Charles Esther
Warren Buffett, the renowned billionaire investor and CEO of Berkshire Hathaway, voiced his opposition to tariffs during a Q&A session at the company’s annual meeting on Saturday in Omaha, Nebraska.
Buffett expressed his belief that “trade should not be a weapon,” highlighting his concerns about the potential consequences of the global trade war that has emerged under President Donald Trump’s administration.
Although Buffett did not directly name Trump, his remarks were a clear criticism of the ongoing tariff policies.
Buffett Calls Tariffs a “Big Mistake”
In a candid response to the first question posed at the meeting, Buffett argued that protectionist measures, such as tariffs, could have adverse effects on the U.S. economy and global trade.
He called the current approach a “big mistake,” warning that it could hurt the United States in the long term.
“I don’t think it’s right, and I don’t think it’s wise,” Buffett said.
His remarks were aimed at the global trade tensions that have intensified since President Trump began imposing tariffs, particularly on China. Buffett emphasized the negative repercussions these trade wars could have on the prosperity of both the U.S. and other nations.
The Importance of Global Prosperity
Buffett expanded on his belief that the world’s prosperity does not come at the expense of the United States. He stated, “I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”
He underlined the importance of fostering international cooperation and progress rather than retreating into isolationist policies.
Buffett further remarked that the United States has already achieved incredible success, noting that the country’s rise from humble beginnings over the past 250 years has been unprecedented.
A Shift in Economic Landscape
Buffett’s criticism came at a time when Berkshire Hathaway reported a drop in first-quarter profits by approximately 14% compared to 2024, bringing in $9.6 billion.
Despite this decline, the company’s cash reserves grew to more than $347 billion.
While Berkshire Hathaway’s performance has continued to surge despite the volatility in global markets, Buffett’s remarks suggest that he believes the tariff-driven trade war could hinder future economic growth.
Since Trump’s election, Berkshire Hathaway has posted a remarkable increase of over 20%, outperforming the S&P 500, which saw a nearly 2% decline.
The Tariff Dispute with China
Buffett’s comments came in the context of the ongoing trade dispute between the U.S. and China, which began in April when President Trump imposed tariffs of 145% on Chinese goods.
In retaliation, China levied its own tariffs of 125%, escalating tensions between the two largest economies in the world.
Buffett’s views reflect concerns shared by many economists and business leaders, who argue that tariffs disrupt trade and supply chains, ultimately hurting consumers and businesses in both countries.
Conclusion
Warren Buffett’s critical stance on tariffs underscores his long-held belief in free trade and international cooperation.
While he refrained from directly naming President Trump, his comments provide a clear message that the current trade policies may have negative long-term consequences for the U.S. economy.
As the global trade war continues to evolve, it remains to be seen how Buffett’s warnings will be received by policymakers and business leaders alike.
