Billionaire investor Warren Buffett has reignited debate over U.S. trade policy, sharply criticizing tariffs as “an act of war, to some degree,” just as China unleashed a wave of retaliatory duties on American goods. In a rare CBS interview aired Sunday, the Berkshire Hathaway CEO warned that tariffs, often touted as a tool to protect domestic industries, are ultimately a tax on consumers. “The Tooth Fairy doesn’t pay ‘em!” Buffett quipped, emphasizing that everyday Americans foot the bill through higher prices. His remarks come as the U.S. implemented 25% tariffs on Canadian and Mexican goods and raised Chinese tariffs from 10% to 20% today, prompting Beijing’s swift response.

China’s latest salvo includes a various tariffs on U.S. chicken, wheat, corn, soybeans, beef, pork, and sorghum, alongside a ban on chicken livestock—a move impacting roughly $14 billion in U.S. exports. This escalation follows the Trump administration’s aggressive trade stance, which Buffett has long opposed. In 2016, he called such policies “a very bad idea,” and his weekend critique doubles down on that view, framing tariffs as economically disruptive. “You always have to ask, ‘And then what?’” he said, hinting at a cascade of inflationary pressures and strained global relations.

Buffett’s comments carry weight as Berkshire Hathaway sits on a record $334.2 billion cash pile, reflecting a cautious stance amid market uncertainty. China’s retaliation, targeting America’s farm belt, could deepen woes for rural producers already battered by shifting trade patterns. With the U.S. also eyeing “reciprocal tariffs” on the EU and beyond, Buffett’s warning of a tariff-fueled economic war resonates louder. As Beijing vows further countermeasures, the Oracle of Omaha’s plea for restraint underscores the high stakes of this spiraling trade conflict.