Legendary investor Warren Buffett yesterday criticised US President Donald Trump’s hardline trade policy, without naming him directly, saying it’s a big mistake to slap punitive tariffs on the rest of the world, reports CNBC.
“Trade should not be a weapon,” Buffett said at Berkshire Hathaway’s shareholder meeting, an annual gathering in front of thousands in Omaha, Nebraska. “I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”
Trade and tariffs “can be an act of war,” added the legendary investor. “And I think it’s led to bad things. Just the attitudes it’s brought out. In the United States, I mean, we should be looking to trade with the rest of the world and we should do what we do best and they should do what they do best.”
Buffett’s comments, his most direct yet on tariffs, came after the White House’s rollout of the highest levies on imports in generations shocked the world last month, triggering extreme volatility on Wall Street. The president later went on to announce a sudden 90-day pause on much of the increase, except for China, as the White House sought to make deals with countries. The pause has stabilised the market somewhat.
Still, Trump has slapped tariffs of 145 per cent on imported Chinese goods this year, prompting China to impose retaliatory levies of 125pc. China said last week it is evaluating the possibility of starting trade negotiations with the US.
Buffett explained that protectionist policies could have negative consequences over the long term for the US, after it’s become the leading industrial nation in the world.
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