Warren Buffett, who campaigned for Hillary Clinton in 2016, has never been a fan of President Trump. The third richest person in America has citicized 260th richest's withholding of his tax returns, trickle-down economic policy and tax plan. Trump's proposed tariffs on Chinese imports have caused a market drop. One result? Buffet's net worth has tumnled $6.2 billion this week.
The potential tariffs on tens of billions dollars worth of imports from China would follow the set of steel and aluminium tariffs that took effect Friday. The steel and alluminium will likely be less impactfull than first imagined as most of the United State's top steel and aluminium importers are extempt. The China tax, however, has ignited fears of a trade war as the Trump administration seems ti becoming more and more aggresive in its effort in narrowing the U.S. trade deficit. In response, the Dow Jones Industrial Average fell more than 700 points on Thursday.
Berkshire Hathaway, the conglomerate of over 60 companies that Buffet heads, includes a number of manufacturing and industrial companies. Both areas were among those hit hardest by the trade-war fears. As a result, Berkshire Hathaway stock fell nearly 7% since Monday. With nearly all of Buffet's wealth tied up in shares of Berkshire Hathaway, his net worth took an imediate hit.
Madeline P. Berg.