As tensions between the U.S. and China over trade reached a boiling point today, a statement of the legendary investor Charlie Munger has resurfaced on the topic of tariffs.

What Happened: In a joint interview with CNBC alongside Warren Buffett and Bill Gates in 2019, Munger addressed the growing trade dispute between the world's two largest economies.

At the time, markets were rattled by a tweet from then-President Donald Trump threatening to hike tariffs on Chinese goods to 25%.

When asked about the implications of such tariffs, Munger didn't mince words.

See Also: Charlie Munger Once Said That In His Entire Life, He Has Never Known A Wise Person Who ‘Didn’t Read All The Time -- None, Zero:’ Here Are Some Books That The Berkshire Hathaway Vice Chair Recommended -- And Not All Are About Finance Either

"I don't think we want a full-scale tariff war as high as both sides can make it," Munger said. "That would be massively stupid."

He acknowledged that negotiations would likely leave both countries feeling bruised, but insisted that discomfort was part of the process.

"If both of them are a little disappointed with the negotiations and feel roughed up, that's the way they should feel," Munger said. "Since a settlement is so much better than a trade war for both sides, they ought to just get used to having a little loss of face and make some kind of a settlement. And I think they will."

As global leaders grapple with renewed trade tensions, Munger's words serve as a reminder: "A good settlement is better than a lovely world war."

Why It's Important: Earlier this month, Trump, who is in his second term as President, imposed a 145% tariff on Chinese imports, prompting China to retaliate with a 125% tariff on U.S. products.

On Tuesday, he announced a substantial cut to the steep tariffs on Chinese goods, though they won't be fully eliminated. “It won't be that high, not going to be that high,” the President said, adding that, but it “won’t be zero” either.

U.S. Treasury Secretary Scott Bessent reportedly described the current tariff levels as “unsustainable” and expressed optimism about a potential “de-escalation” in trade tensions between the U.S. and China.

Following this on Thursday, the Chinese Ministry of Commerce denied the existence of any ongoing bilateral trade negotiations with the U.S., stating that the reports of progress in such talks are without factual basis.

S&P 500 is down 6.54% year-to-date, while NASDAQ-100 is down 8.40% during the same time.

Photo: Kent Sievers/Shutterstock

Read Next:

• Charlie Munger Said Getting Rich Is Harder Than Ever, But Here's ';The Beauty Of It' -- You Only Have To Do It Once

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.