According to the Sydney Morning Herald, billionaire Buffett said: “If commercial war really happens, it will hurt the whole world.” The famous investor made the comment after China announced it would impose punitive taxes on US $ 60 billion cargo.
Earlier, US President Donald Trump announced that he would tax from 10% to 25% to $ 200 billion of Chinese goods from May 10. In addition, Mr. Trump also threatened to impose a 25% tax on China’s 325 billion commodity block.
Billionaire Warren Buffett said the trade war between the US and China could negatively affect the global economy.
Buffett said that the comprehensive trade war between the US and China is unlikely, but “if it happens, it will have a very bad effect on everything Berkshire Hathaway has.”
Berkshire Hathaway Group of billionaire Buffett owns or invests in many Chinese companies, including Apple and Chinese electric car maker BYD Co. Berkshire owns Apple shares worth $ 50 billion.
Berkshire vice president Charlie Munger said that President Trump “is not completely crazy” when raising taxes on Chinese goods. “But a commercial war is a crazy thing,” he stressed.
Despite the current tensions, billionaire Buffett said investors should not sell off stocks because of negative information about US-China trade.
“The US and China will continue to be two superpowers in the next 100 years and bilateral tensions will always exist,” Buffett stressed.