Sassin' on tariffs with Warren Buffett: Equality for investors, not economic warfare
Criticizes Trump's Implementation of Tariffs: Buffett Believes Trade Shouldn't Be Manipulated as a Weapon
Steven Wang, CEO and founder of financial app Dub, chats with Varney & Co. about his mission of leveling the playing field for investors across the nation. Meanwhile, Warren Buffett, the investing legend and powerhouse behind Berkshire Hathaway, drops some truth about tariffs on the latest media tour.
Old school investor Warren Buffett don't mince words when it comes to President Donald Trump's tariffs. Over the weekend, the 94-year-old billionaire slammed the Trump administration's tariff strategy as a destructive, relationship-damaging approach to trade.
During the annual Berkshire Hathaway event, which draws around 40,000 people each year, Buffett took aim at the White House's use of tariffs as a weapon in international trade.
"Balanced trade is good for the world," and "trade should not be a weapon," Buffett declared in Omaha, Nebraska. He wasn't alone at the lecture—former Secretary of State Hillary Clinton also attended the event.
WARREN BUFFETT SLAMS TRUMP'S TARIFFS AS AN 'ACT OF ECONOMIC WAR': 'TOOTH FAIRY DOESN'T PAY 'EM'
But what's the big stink about tariffs, you ask? According to Buffett, who affectionately goes by the name "Oracle of Omaha," it's a recipe for disaster.
"I don't think it's a good idea to design a world where a few countries say, ha ha ha, we've won," Buffett warns. "I do think that the more prosperous the rest of the world becomes, ... the more prosperous we'll become," he added.
"We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best," he said.
Trump's support for tariffs stems from the belief that they level the playing field and make trade fair for the U.S. However, despite concerns about the U.S. economy's direction, Buffett maintained his upbeat outlook on the situation, reassuring us that criticism of policies and their creators is par for the course.
"We're always in the process of change," he said. "I would not get discouraged... We're all pretty lucky."
If you're wondering, Buffet's skepticism towards tariffs isn't new. Just a few months ago, before Trump's official tariff announcement, Buffett said that tariffs could be considered a "tax on goods" and (jokingly) noted that "The Tooth Fairy doesn’t pay 'em."
Warren E. Buffet, Chairman of the Board of Berkshire Hathaway, speaks in Omaha, Nebraska, U.S., May 2, 2025. (REUTERS/Brendan McDermid/File Photo)
BERKSHIRE HATHAWAY'S PROFITS TAKE A HIT, AS TARIFFS CONTINUE TO RAISE PRICES AND SLOW GROWTH
Buffet's comments come at a time when Berkshire Hathaway, a massive company that owns popular brands like Geico, DQ, Apple, Coke, and American Express, is feeling the heat. The first-quarter profits decreased significantly, falling to $4.6 billion from $12.7 billion the previous year.
Operating earnings dipped by 14% to $9.6 billion, reflecting unrealized losses on stocks like Apple, as well as $860 million in insurance losses caused by California wildfires, the company explained. Despite the hardships, BNSF railroad, which is predominantly owned by Berkshire, saw earnings improve.
Buffet isn't too panicked about Berkshire's cash reserves, stating that the company came close to spending $10 billion recently, but buying opportunities don't just pop up overnight. According to Buffett, future spending will likely happen over five years, not tomorrow.
Buffet's hard-hitting rhetoric and down-to-earth approach to finance make him a beloved figure in the investing world. And given his successful track record and commitment to protecting investors, it's no surprise that his criticism of Trump's tariffs has sparked conversations about the economy and the long-term effects of tariffs on trade relationships and global prosperity.
- Warren Buffett, known as the "Oracle of Omaha," expressed his concern about President Donald Trump's tariffs, labeling it as an 'act of economic war' that could lead to a recipe for disaster.
- Despite the negative impact of tariffs on Berkshire Hathaway's profits, with first-quarter earnings decreasing significantly, Warren Buffett remains focused on long-term investment opportunities.
- The tariffs continue to raise prices and slow growth, impacting Berkshire Hathaway's profits, a company that owns popular brands like Geico, DQ, Apple, Coke, and American Express.
- Buffet's skepticism towards tariffs isn't new, as he previously compared them to a "tax on goods" and joked that "The Tooth Fairy doesn’t pay 'em."
- The debates on tariffs have expanded to include discussions about the economy, trade relationships, and the long-term effects on global prosperity, thanks to Warren Buffett's critical stance on the issue.
