Warren Buffett Says Trump's Tariffs Are 'A Big Mistake,' Warns Trade Policies Could Be An Act Of War

Buffett's comments were his most direct rebuke of the U.S. President’s protectionist policies since the reciprocal tariffs were enacted.
Warren Buffett at the Forbes Media Centennial Celebration at Pier 60 on September 19, 2017 in New York City. (Photo by Daniel Zuchnik/WireImage)
Warren Buffett at the Forbes Media Centennial Celebration at Pier 60 on September 19, 2017 in New York City. (Photo by Daniel Zuchnik/WireImage)
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Sourasis Bose·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Berkshire Hathaway Chair and CEO Warren Buffett warned on Saturday that tariffs are a "big mistake" and trade should not be used as a weapon.

Buffett's criticism of President Donald Trump's tariffs came during Berkshire's shareholder meeting on May 3, during which he also announced a surprise exit as the conglomerate's CEO after over six decades.

"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," Buffett said during his most direct rebuke of Trump's protectionist policies since the reciprocal tariffs came into effect.

Markets were roiled last month after Trump imposed higher-than-expected tariffs on most of the country's biggest trade partners, raising the odds of a global recession.

The U.S. later enacted a 90-day pause on tariffs on all countries except China to allow negotiations and somewhat stop the bleeding of markets.

However, a steep 145% tariff remains on most Chinese goods, while Beijing has introduced a 125% tariff on American exports in retaliation. In recent days, the two sides have signaled their openness to talks.

"There's no question that trade can be an act of war, and I think it's led to bad things," he said. "Just the attitudes it's brought out in the United States ... we should be looking to trade with the rest of the world, and we should do what we do best, and they should do what they do best."

"We were good at producing tobacco and cotton 250 years ago, and we traded it. And we want a prosperous world with eight countries with nuclear weapons, including a few that are, what I would call, quite unstable," Buffett added.

"I do not think it's a great idea to try and design a world where a few countries say, 'Ha, ha, ha. We won,' and other countries are envious."

Berkshire, the $1.16 trillion conglomerate Buffett has built, also flagged that considerable uncertainty remains around the outcome of the tariffs after posting a 14% drop in operating profit in the first quarter.

The company remained a net seller of stocks for the tenth consecutive quarter, and its cash pile ballooned to nearly $348 billion.

Investors closely watch Buffett's comments to assess the health of the economy. Berkshire controls a wide range of companies, including Geico insurance, utility firms, BNSF railroad, and Dairy Queen.

"It's a big mistake, in my view, when you have seven and a half billion people that don't like you very well, and you got 300 million that are crowing in some way about how well they've done - I don't think it's right, and I don't think it's wise," Buffett said.

Berkshire Class A shares have gained 18.9% year-to-date compared with a 3.8% fall in the SPDR S&P 500 ETF (SPY) and a 5% drop at Invesco QQQ Trust Series 1.

Also See: S&P 500, Dow Jones Futures Slip After 9-Day Rally As Fed Decision Looms: Why One Strategist Says Fed Must Act Now

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