Warren Buffett has issued a massive warning on the dangers of protectionism, arguing that trade should not be used as a political weapon and calling tariffs “an act of war” that can lead to damaging consequences.
“Trade tariffs are an act of war… Trade should not be a weapon,” the Berkshire Hathaway (NYSE:BRKa) chairman said at annual shareholder meeting. His comments come amid growing concern over escalating U.S. trade tensions.
Buffett, long known for his optimism about the American economy, underscored that while the U.S. has benefited from free trade, weaponizing it could be counterproductive.
“Trade can be an act of war and [tariffs] have led to bad things,” he added.
The Trump administration is engaged in a sweeping overhaul of its trade policies, with President enacting broad-based tariffs on a wide range of imports.
he moves have prompted retaliation from major trading partners, sparked volatility in global markets, and raised fears about the long-term impact on global supply chains and inflation.
Buffett emphasized the benefits of global prosperity, saying, “the more prosperous the rest of the world gets, the better and safer it gets for us [in America].”
He also cautioned against isolationist trade policies, suggesting that alienating the global community could have serious long-term consequences for the United States.
“It’s a big mistake in my view when you have 7.5 billion people that don’t like you very well and you have 300 million that are crowing in some way about how well they’ve done,” Buffett said. “I don’t think it’s right or wise.”
Speaking about owning ~$335 billion in U.S. Treasuries, Buffett said Berkshire “made a lot of money by now wanting to be fully invested at all times.”
“Nobody knows what the market is going to do tomorrow, next week and next month. Nobody knows what business is going to do tomorrow, next week or next month, but they spend all their time talking about it because it is easy to talk about… but it has no value.”
Warren Buffett praised Apple (NASDAQ:AAPL) CEO Tim Cook during Berkshire Hathaway’s annual meeting, crediting him for the company’s significant gains from its massive Apple stake.
Buffett began on a light note, saying Cook’s recent earnings call was “the only investment quarterly call” he listened to.
“I’m somewhat embarrassed to say that Tim Cook has made Berkshire a lot more money than I’ve ever made Berkshire Hathaway,” he joked. “Credit should be given to him.”
“I knew Steve Jobs briefly,” Buffett said. “Steve died young, as you know, and nobody but Steve could have created Apple, but nobody but Tim could have developed it like it has.”
“So on behalf of all of Berkshire, thank you,” Buffett added.
