Buffett Criticizes Tariffs: Trade Should Not Be a Weapon

In response to President Donald Trump’s tariff policies, Warren Buffett, the chief executive of Berkshire Hathaway, stated during the company’s annual meeting that trade ‘should not be a weapon.’ ‘You can make some very good arguments that balanced trade is good for the world,’ Buffett said while answering a question about trade barriers. ‘There’s no doubt that trade can be an act of war,’ he added, emphasizing that the U.S. ‘should pursue trade with the rest of the world.’ The group commented on tariffs in its first-quarter earnings release, published before today’s meeting (May 3, 2025). Berkshire’s operating earnings decreased by approximately 14% compared to the previous year, reaching $9.6 billion, while its cash pile surged to $347.7 billion as the company struggles to invest it. In the announcement, Berkshire warned that tariffs could negatively impact its vast portfolio of businesses. Berkshire’s results are closely monitored because the steady core of its operations, ranging from insurance to railroads, energy, and manufacturing, provides insight into the American economy. ‘At present, we cannot reliably predict the potential impacts on our businesses, whether through changes in product costs, supply chain costs and efficiency, or customer demand for our products and services. It is reasonably likely there will be adverse effects on most, if not all, of our operating businesses,’ as well as its stock portfolio. Although Buffett declared he would not endorse any political candidate last year, this did not stop him from making indirect comments, such as his March statement calling tariffs an ‘act of war.’ Trump’s announcements about ‘Freedom Day’ tariffs on April 2 shocked stock markets and investment firms. The tariffs are expected to lead to higher repair costs for auto insurers like Buffett’s Geico.