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

According to him, the fall of stock markets after President Donald Trump's tweet about increasing tariffs on Chinese imports has become a rational answer.

Berkshire Hathaway Inc., a conglomerate, owns or invests in many companies that do business in China, including Apple Inc.

“If we actually have a trade war it will be bad for the whole world. A full-scale trade war is unlikely, he said, but “would be bad for everything Berkshire owns,” he said.

According to him, Trump was not “totally crazy” for wanting higher tariffs on some goods, but that a trade war would be “massively stupid.”

“We will buy the same stocks today that we were buying last week,” and would be “delighted” if a good Chinese business expressed interest in a Berkshire transaction, Buffett added.

He also said tough talk ahead of trade talks was understandable, while for some people “the best technique is to act half-crazy,” but it would be ineffective to “shake your fist first and then shake your finger later on.”

Earlier, Trump said he would increase tariffs on Chinese goods worth $ 200 billion and will introduce new tariffs in the near future, increasing pressure on China in an attempt to conclude a trade agreement.

According to the US leader, tariffs for Chinese goods worth $ 200 billion on Friday will be raised from 10% to 25%, although in February the American leader decided to keep them at a 10% level against the background of progress in trade talks.

Trump has also announced his plans to introduce 25% duty on Chinese goods worth $ 325 billion in the near future. As a result, tariffs can spread to virtually all products imported into the US from China.

After his statements, stock markets fell, and oil prices declined.

Earlier, the Wall Street Journal reported that China is considering canceling meetings this week in Washington in light of Trump's comments, which caught Chinese officials off guard.