Buffett's Strong Warning: Trade Shouldn't Be a Weapon
Warren Buffett didn’t pull any punches at this year’s Berkshire Hathaway annual meeting. In front of a room full of shareholders, he sounded the alarm on the current trend toward using trade as a political weapon. 'It’s a big mistake,' Buffett told the crowd, making it clear he’s not a fan of America’s recent move to slap tariffs on other countries. For him, the risk isn’t just numbers on a spreadsheet — it's the backlash from billions of people worldwide who could sour on the U.S.
Buffett’s worry isn’t hypothetical. After President Trump’s latest protectionist playbook came into force, global markets have been hit by wild swings, and America’s own economy shrank in the first quarter of 2025. That painful contraction—rare for a country used to steady growth—came just as American businesses and families were hoping for solid footing after an uncertain few years. Berkshire Hathaway’s own earnings report fingered the shifting trade landscape as a big source of trouble on Wall Street.
Buffett’s solution? Go back to basics: let each country do what it’s best at and swap goods in a way that helps everyone win. He likes the idea of mutual trade benefits, where specialization means more wealth for all—while protectionist tariffs, in his view, only add friction and global mistrust.
Uncertainty, Resilience, and What's Next at Berkshire Hathaway
The market hasn’t been this jumpy in years. It’s not just big corporations sweating over tariff headlines; small investors and everyday workers are feeling the pinch. With Berkshire Hathaway referencing 'considerable uncertainty' in its most recent report, there’s a sense that nobody really knows what comes next. Businesses across the U.S. are rethinking supply chains, worried about sudden rule changes turning careful plans upside down.
Yet, as always, Buffett’s perspective zooms out beyond the latest quarterly slip-up. He reminded investors just how often America has been through rough patches before — from war years to deep recessions — only to come back stronger. That long-term optimism hasn’t faded, even as he openly recognizes the serious headaches new tariff strategies are causing today. Buffett pointed directly to the danger of 'crowing' about U.S. strengths while the rest of the world stews, warning that pride can backfire in a massively connected economy of 7.5 billion people.
The legendary investor also talked about Berkshire’s future, putting the spotlight on his likely successor, Greg Abel. While Buffett has been known for his laidback, hands-off style, he hinted that Abel might opt for a more active approach. That could mean changes are coming at the top of one of America’s most famous conglomerates, just as the company—and the U.S. economy—find themselves in uncharted waters.
For now, Buffett’s message rings clear: building walls in trade won’t protect the U.S. from global risks, and it could do lasting harm. With so much at stake, it’s hard to ignore when one of finance’s longest-running voices urges caution—and openness—at a time when every move on the global chessboard seems to count.