3-3-2025 (CALIFORNIA) Renowned investment mogul Warren Buffett has issued a stark warning about President Trump’s new tariff policy, describing such economic measures as “an act of war, to some degree” during his recent CBS News interview on 2 March.
The Berkshire Hathaway chairman, whose investment portfolio spans numerous industries likely to be affected by the levies, emphasised the practical economic impact: “Over time, they are a tax on goods. The Tooth Fairy doesn’t pay them!” Buffett challenged policymakers to consider the broader consequences, adding his characteristic economic wisdom: “And then what? You always have to ask that question in economics.”
Consumer confidence has taken a hit following Trump’s announcement that fresh tariffs on Canadian, Mexican and Chinese imports will commence on 4 March. The policy includes a 25% levy on Canadian and Mexican goods, whilst China faces an additional 10% tariff atop the existing 10% implemented last month.
In his Truth Social platform statement, the President justified these measures as necessary deterrents against illegal drug trafficking, claiming they would remain “in full force and effect” alongside the planned “April Second Reciprocal Tariff date.”
Public sentiment appears increasingly cautious about these economic manoeuvres. PYMNTS Intelligence research reveals that 57% of self-described knowledgeable consumers and small businesses hold negative views of the tariffs. More troublingly, 78% anticipate price increases whilst 75% expect product shortages—anxieties reminiscent of pandemic-era supply chain disruptions, albeit from different causes.
The hospitality sector has been particularly vocal in its concerns. The National Restaurant Association has petitioned the President directly, warning that these tariffs could cost the industry upwards of $12 billion and inevitably lead to higher menu prices. Their appeal seeks exemptions for food and beverage products to “help keep menu prices stable,” according to correspondence reviewed by Bloomberg News.
PYMNTS CEO Karen Webster noted last month that consumers aren’t merely concerned about macroeconomic implications—40% express such worries—but are fundamentally anxious about immediate personal financial impact.
