A private survey showed American factory activity last month edged closer to stagnation—slowing growth combined with faster inflation—as new orders and employment contracted. A gauge of prices paid for materials jumped to the highest since June 2022. So how should investors react to all this smoke on the horizon?

U.S. stocks are remaining relatively calm Monday, and indexes are drifting in mixed trading ahead of President Donald Trump’s latest deadline on tariffs. The S&P 500 was 0.1% lower in afternoon trading.

Stocks fell and bond yields slid on Tuesday in Asia with investors ducking for cover as new U.S. tariffs on Canada, Mexico and China took effect, threatening to escalate global trade tensions.

Tim Miller and Jonathan V. Last talk the stock market tanking in real time as Donald Trump announces tariffs on Mexico and Canada, with both Nasdaq and Dow Jones tumbling significantly by end of day.

Stocks were falling again Monday on tariff news. Add consumer confidence and jobless claims data into the mix, and it appears volatility will be the norm in the short term.

"Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em!" Berkshire Hathaway CEO Warren Buffett told CBS.

Legendary Berkshire Hathaway CEO Warren Buffett likened tariffs to an economic "act of war" in an interview with CBS News and said that tariffs ultimately serve as a tax on goods.

KEY TAKEAWAYS Warren Buffett said in a rare TV interview that tariffs are an "act of war" and could cause inflation.The legendary investor and CEO of conglomerate Berkshire Hathaway made those comments Sunday in an interview with CBS News for a documentary on Katherine Graham,