I call it the return shot. The US declares tariffs against Canada, Mexico and China exports. They all react with tariffs against US exports. That’s retaliation. It is so predictable. Now, Trump sees this, and declares that there will be added US retaliation tariffs. So, just guess what happens next. A second full round of pain for all.

“Tariffs are actually, we’ve had a lot of experience with them. They’re an act of war, to some degree,” Buffett said in an interview with CBS News that aired on Sunday.

Warren Buffet is 94 years old, and an incredibly successful investor, with a net worth of 160 billion dollars. Most economists are with Buffet. Countries react as if they are attacked. Not much is accomplished.

And as I wrote in my last posting, Trump’s whole basis for tariffs is a lie, that we are making our trading partners pay for their unfair trading practices. The tariffs are past to consumers. So, it is inflationary to us and our trading partners.

When asked about tariffs’ impact on inflation, the 94-year-old Berkshire Hathaway chairman was blunt: “Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” He added economists should always ask, “And then what?”

The “… then what?” is more of the same, more pain and unfortunately, from Donald Trump, a whole series of lies.

Stay tuned,

Dave