Warren Buffet calls Trump's steep tariffs on Canada, Mexico as 'an act of war'

Buffet told CBS News that tariffs is to “some degree an act of war”.

On Monday, Trump told reporters that 25 per cent taxes on imports from Mexico and Canada would come into effect on Tuesday "without any delay". There was “no room left for Mexico or for Canada” to avoid the steep new tariffs any longer.

American consumers to pay

Earlier, the world-famous investor said in the media interview that tariffs over time will only affect consumers in America who will end up paying more for the goods as tariffs serve as a tax on goods.

Further, the 94-year-old Buffett said his company, Berkshire Hathaway, paid the US government more than $101 billion in taxes, which was more than any other firm in history. Buffet mocked the government adding that the “Tooth Fairy” is not paying these taxes.

Also, Buffet, who slammed Trump over increasing trade tariffs said that the important question to ask always in economics is, ‘then what?'. “You always say, 'And then what?'" he added, according to the report.

However, Buffet refused to comment on the current state of the US economy, which he observed as the “most interesting subject in the world”.

Also read: Trump plans tariffs on Mexico, Canada while doubling existing 10% tariffs on China

Trump levies tariffs on Canada, Mexico

Trump had announced blanket tariffs on imports in February on Canada and Mexico accusing them of not doing anything to combat fentanyl trafficking and illegal immigration. But the tariffs was paused only to come into effect from March 4.

According to experts, the duties will impact over $918 billion worth of US imports from Canada and Mexico.

Also read: Canada warns of ‘extremely strong response’ if US clamps new tariffs

Trudeau's tit-for-tat move

Reacting to the tariffs, Canada Prime Minister Justin Trudeau said he will also levy tariffs on US imports from March 4.

Pointing out that Canada will not let this “unjustified decision” slide, Trudeau said if American tariffs come into effect tonight, Canada will respond with 25 per cent tariffs against $155 billion of American goods from tomorrow.

“Because of the tariffs imposed by the US, Americans will pay more for groceries, gas and cars, and potentially lose thousands of jobs,” he said. Further, Trudeau added that tariffs will “disrupt” an incredibly successful trading relationshi and violate the trade agreement negotiated by President Trump in his last term.

Mexico responds

Meanwhile, Mexican president Claudia Sheinbaum shared that her country has contingency plans to counter Trump’s tariffs. Though, earlier, Mexico did send 10,000 National Guard troops to their shared border to crack down on drug trafficking and illegal immigration.

Tariffs on China

Meanwhile, the US President has also gone ahead and hiked the tariff on China to 20 per cent from 10 per cent. Beijing warned of resorting to countermeasures against the new levies to safeguard its own interests.

Trump has threatened reciprocal tariffs on all US trading partners, including India.

However, companies like Ford and Walmart have warned of the negative impact of tariffs on their businesses. And many research institutions have said that the American customers will end up having to bear the increase in prices of goods.