Warren Buffett's Stance on Import Tariffs Raises Flags. But Don't Ignore His Words on Investing During Times of Market Turmoil.
Investors often look to Warren Buffett during times of trouble because the billionaire has been through just about every market environment imaginable. And during the ups and downs, he's persisted, standing by his pledge to buy shares of quality companies for reasonable prices and hold on for the long term. This has been a winning strategy, helping Buffett, at the head of Berkshire Hathaway, deliver market-beating gains over 59 years. Right now -- as stocks tumble thanks to concerns about President Donald Trump's tariffs on imports -- seems like an appropriate time to consider Buffett's words. Trump this week set out new details of his plan to tax imports, launching a 10% tariff on all imports into the U.S. as well as a range of tariff levels by country -- with the heaviest levy of 54% on imports from China. Investors are concerned this will hurt both corporate earnings and the general economy at home, and possibly result in a recession.In fact, even Buffett has criticized the idea of import tariffs, recently saying during a CBS News interview that they are "an act of war, to some degree. ... Over time, they are a tax on goods. ... You always have to ask that question in economics. You always say, 'And then what'?"Continue reading
Investors often look to Warren Buffett during times of trouble because the billionaire has been through just about every market environment imaginable. And during the ups and downs, he's persisted, standing by his pledge to buy shares of quality companies for reasonable prices and hold on for the long term. This has been a winning strategy, helping Buffett, at the head of Berkshire Hathaway, deliver market-beating gains over 59 years.
Right now -- as stocks tumble thanks to concerns about President Donald Trump's tariffs on imports -- seems like an appropriate time to consider Buffett's words. Trump this week set out new details of his plan to tax imports, launching a 10% tariff on all imports into the U.S. as well as a range of tariff levels by country -- with the heaviest levy of 54% on imports from China. Investors are concerned this will hurt both corporate earnings and the general economy at home, and possibly result in a recession.
In fact, even Buffett has criticized the idea of import tariffs, recently saying during a CBS News interview that they are "an act of war, to some degree. ... Over time, they are a tax on goods. ... You always have to ask that question in economics. You always say, 'And then what'?"
