Warren Buffett has criticized US President Donald Trump’s trade policy, warning that the White House’s escalating use of tariffs amounts to turning trade into “an act of war.”
Speaking at Berkshire Hathaway’s annual shareholder meeting on Saturday, the billionaire investor argued against using tariffs as a weapon, saying balanced trade is essential for global prosperity and peace.
Since returning to office in January, Trump has imposed sweeping tariffs, culminating in his ‘Liberation Day’ tariffs introduced on April 2. They target more than 90 US trade partners. Most were paused for 90 days, though a baseline 10% remains in effect. China was excluded from the pause and was hit with 145% on all imports. Beijing retaliated with 125% tariffs and new export controls on US goods.
Buffett did not name Trump directly, but warned that America’s trade stance could isolate it globally.
“I don’t think it’s a good idea to design a world where a few countries say, ha ha ha, we’ve won. And other countries are envious,” Buffett stated. “It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done.”
Calling for a change in direction, Buffett said US policy should focus on mutual prosperity.
”I do think that the more prosperous the rest of the world becomes… the more prosperous we’ll become and the safer we’ll feel… We should be looking to trade with the rest of the world,” he said.
”Trade can be an act of war [but] balanced trade is good for the world. The more balanced trade there is, the better… The main thing to do is not use trade as a weapon,” he added.
The US-China tariff standoff has roiled markets and prompted the IMF to cut its global growth forecast from 3.3% to 2.8% for 2025. Analysts have warned that the full implementation of Trump’s tariff plan could destabilize global trade and trigger a US recession.
Buffett, who turns 95 in August, also used the meeting to announce his retirement by the end of the year, surprising shareholders. He said he would recommend Vice Chairman Greg Abel, long considered his successor, to lead Berkshire Hathaway. Abel currently oversees the company’s noninsurance businesses.
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