Warren Buffett has issued a strong caution against protectionist policies, warning that using trade as a political weapon is dangerous and likening tariffs to “acts of war” that can bring serious repercussions.
“Tariffs are essentially an act of war… Trade shouldn’t be weaponized,” said the Berkshire Hathaway (NYSE: BRKa) chairman during the company’s annual shareholder meeting. His remarks come amid intensifying concerns over escalating trade disputes involving the U.S.
Buffett, who has consistently expressed confidence in the U.S. economy, acknowledged that while America has greatly benefited from free trade, turning it into a tool for conflict is a mistake.
“Trade can escalate into war-like actions, and tariffs have historically led to harmful outcomes,” he noted.
The Trump administration is currently pushing forward with sweeping changes to trade policy, introducing broad tariffs on numerous imported goods. These measures have triggered retaliatory tariffs from key trading partners, rattled global markets, and sparked fears over long-term damage to supply chains and rising inflation.
Buffett highlighted the importance of global economic growth, stating, “The more prosperous other countries become, the better and safer it is for us in the U.S.”
He also warned against isolationist policies, stressing that alienating international partners could have significant negative consequences for America.
“It’s a serious error, in my opinion, to have 7.5 billion people displeased with you while 300 million are boasting about their success,” Buffett said. “That’s neither smart nor sustainable.”
Discussing Berkshire’s holdings of around $335 billion in U.S. Treasuries, Buffett explained that the firm has profited by not rushing to be fully invested at all times.
“No one can predict what the market or the economy will do tomorrow, next week, or next month,” he said. “People spend a lot of time talking about it because it’s easy, but in reality, those predictions aren’t valuable.”
Buffett praises Tim Cook
Buffett also offered praise for Apple (NASDAQ: AAPL) CEO Tim Cook at the meeting, crediting him with driving substantial gains for Berkshire’s large investment in Apple.
Buffett opened with humor, noting that Cook’s recent earnings call was “the only quarterly call” he tuned into.
“I’m almost embarrassed to admit that Tim Cook has made more money for Berkshire than I ever did,” Buffett quipped. “He deserves full credit.”
Buffett reflected on his brief acquaintance with Apple’s late co-founder: “I knew Steve Jobs briefly. Steve’s vision created Apple, but no one but Tim could have scaled it the way it is today.”
“On behalf of everyone at Berkshire, thank you,” Buffett concluded.
