‘Trade should not be a weapon’: Warren Buffett slams Trump’s ‘unwise’ tariff war as Berkshire braces for losses
/wion/media/member_avatars/sites/default/files/styles/medium/public/2024/09/26/456938-author-profilr.png?im=FitAndFill=(80,80)){kind=small}
Published: May 03, 2025, 16:15 IST | Updated: May 03, 2025, 16:15 IST
Story highlights
World: Buffett, now 94, admitted that he once proposed a plan to address trade imbalances. But on Saturday, he stood up for global trade and cooperation.
Warren E. Buffett didn’t hold back on Saturday (May 03) as he criticised President Donald Trump’s use of tariffs, warning they’re harming global commerce.
Speaking at Berkshire Hathaway’s annual meeting in Omaha, often dubbed the “Woodstock of capitalism,” the billionaire investor said, “Trade should not be a weapon. I don’t think it’s right and I don’t think it’s wise.”
Tens of thousands of shareholders gathered to hear Buffett’s long-awaited thoughts, particularly on Trump’s trade moves. He had stayed mostly quiet in public for months.
Buffett, now 94, admitted that he once proposed a plan to address trade imbalances. But on Saturday, he stood up for global trade and cooperation. “We should do what we do best and they should do what they do best,” he said, drawing applause from the crowd.
His comments come at a time when fears around tariffs are rattling markets and impacting many US companies, including his own.
Berkshire Hathaway reported a significant drop in earnings for the first quarter. Operating income, Buffett’s preferred measure, fell 14% to $9.6 billion compared to last year. Net income plunged nearly 64%, mainly due to paper losses on investments.
Most of Berkshire’s businesses saw lower sales and earnings. Insurance underwriting in particular took a hit, partly due to losses linked to the California wildfires.
In a filing released on Saturday, Berkshire warned of the risks created by Trump’s trade stance. “We are currently unable to reliably predict the potential impact on our businesses,” the company said, citing possible changes in product and supply chain costs, as well as customer demand.
Despite the uncertainty in markets, Berkshire’s cash reserves continued to grow. Buffett has referred to it as his “elephant gun,” a fund for major acquisitions. But with few large deals available, the pile has now reached a record $347.7 billion.
Buffett also continued selling off more stocks than he bought, offloading $4.68 billion in shares while buying only $3.18 billion’s worth.
Berkshire Hathaway is seen as a symbol of America’s corporate health, given its wide range of businesses, from railways and insurance to sweets and underwear.
The annual meeting drew big names from the business world. Microsoft co-founder Bill Gates, Apple CEO Tim Cook, and investor William A. Ackman were all present. First-time attendees included Hillary Clinton and Priscilla Chan, wife of Meta CEO Mark Zuckerberg.