Warren Buffett, the chairman and CEO of Berkshire Hathaway, is seen smiling while playing bridge after the company’s annual shareholders meeting in Omaha, Nebraska, on May 5, 2019. (AP Photo/Nati Harnik, File)
Warren Buffett, the 94-year-old investment legend known as the “Oracle of Omaha,” spoke out firmly against the use of tariffs and protectionist trade policies during Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska. Without naming names, Buffett clearly criticized the current U.S. administration’s aggressive trade approach, warning that turning trade into a weapon could backfire for the country and its people.
“Trade shouldn’t be a weapon,” Buffett told a packed arena of investors. He stressed that prosperity in other nations doesn’t harm America — instead, it can help the U.S. grow stronger and feel more secure. In his view, a thriving global economy is not a threat but a shared opportunity.
Buffett voiced deep concern about the harmful effects of tariffs, describing them as potentially hostile moves. “Tariffs can be an act of war,” he said, noting that they’ve stirred negative sentiments and triggered risky behaviour in global relations. He urged for more cooperation, emphasizing that the U.S. should stick to what it does best while allowing other nations to do the same.
These comments came shortly after the U.S. imposed some of the highest import taxes in recent decades, causing waves in global markets. The administration introduced a temporary pause for many of the new tariffs — except those targeting China — in an attempt to ease tensions and negotiate new deals. Still, the tariffs on Chinese goods soared to 145% this year, with China responding with 125% duties on American products. Talks between the two countries may be on the horizon, but the uncertainty remains high.
Buffett didn’t mince words about the dangers of this kind of isolationist mindset. “It’s a mistake to alienate billions of people while boasting about how great we’re doing,” he said. He reminded the audience that America’s success was built over 250 years of growth and cooperation. Acting superior now, he warned, could hurt the country’s future.
Investors had eagerly awaited Buffett’s perspective, especially as the U.S. economy faces increasing headwinds. The first quarter of 2025 marked a contraction in GDP, the first since 2022. With Berkshire Hathaway operating across a broad mix of sectors — from insurance and railroads to fast food — Buffett has a unique window into the country’s financial health.
In its earnings report, Berkshire acknowledged that tariffs and global tensions have created a fog of uncertainty. The company couldn’t yet predict the full impact of these disruptions.
Meanwhile, Buffett has continued to play defense in the market. Berkshire has now sold stocks for ten straight quarters, unloading over $134 billion in 2024 alone. Most of the selling came from trimming down large holdings in Apple and Bank of America. This move has ballooned Berkshire’s cash reserves to a record-breaking $347 billion by the end of March — a clear sign that Buffett is bracing for rough waters ahead.
