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Warren Buffett: Trade war with China would be “bad for the whole world”

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From Independent Journal Review - 

Warren Buffett said on Monday that a trade war between the United States and China would be “bad for the whole world.”

Buffett spoke after U.S. President Donald Trump tweeted on Sunday that he will raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent beginning on Friday.

Trump also said he would soon slap a 25-percent tariff on $325 billion of Chinese goods that have not been taxed.

Major stock markets fell worldwide on Monday in response to the tweet, which preceded scheduled trade talks this week, and was a “rational” response, Buffett said on CNBC television.

More HERE. 

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8 COMMENTS

  1. A trade war with China would be devastating for Buffet’s portfolio which has large holdings in the transportation industry. That’s what Buffet is REALLY worried about! “F” America, he just wants to protect his valuations.

  2. There is more. This is likely the last chance the U.S. or the world has to rein in China. There is a long term game here that needs to be looked at. Right now, the U.S. and the U.S. only is China’s export market and their economy. However in 10 more years, if left unchecked they would grow into dominance. Right now we can still check them economically and we need to. Their theft of intellectual property, their stealing of trade secrets, their espionage needs to be stopped.
    Like most I do not have a government guarantee pension, my pension is market based 401K plan and other investments, so like many I will take a short term beating in a trade war. But we need to fight the long term game now. In the long term it is important to see China as the enemy they are.
    We need to be U.S. centric in the long term, not about the short term profits of corporate board members and CEOs.
    I have mentioend this many time sover the years, but Ricardian Free Trade theory is predicated upon two principles:
    absolute advantage
    comparative advantage
    Free trades is only beneficial between two countries when they both operate under the auspice of comparative advantage. IF one has an absolute advantage one then one nation is furry kittened in the deal. For years the U.S. has been getting kittened by China because China has an absolute advantage in many areas of trade.
    Trump is brave enough to take this on, as a nation we need, yes need, to back hi play, the temporary balance in our 401K plans be damned.