In a stark warning, billionaire investor Warren Buffett has criticized the US trade policy under President Donald Trump, cautioning that the escalating use of tariffs is akin to turning trade into “an act of war.” Speaking at Berkshire Hathaway’s annual shareholder meeting, Buffett argued that balanced trade is essential for global prosperity and peace, emphasizing the need for a shift in direction.
Since January, Trump has imposed sweeping tariffs, targeting over 90 US trade partners with his ‘Liberation Day’ tariffs introduced on April 2. While most of these tariffs were paused for 90 days, a baseline 10% remains in effect. China, however, was hit with 145% tariffs on all imports, prompting Beijing to retaliate with 125% tariffs and new export controls on US goods. Buffett, without directly naming Trump, expressed concern that America’s trade stance could lead to global isolation, stating, “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.”
Instead, Buffett advocated for a focus on mutual prosperity, saying, “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 emphasized that while trade can be used as a weapon, balanced trade is beneficial for the world, and its increase would lead to better global outcomes. Buffett’s warnings come at a time when the US-China tariff standoff has already 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.
In a surprise move, the 95-year-old Buffett also announced his retirement by the end of the year, recommending Vice Chairman Greg Abel to succeed him as the leader of Berkshire Hathaway. Abel currently oversees the company’s non-insurance businesses. As the global economy navigates these uncertain times, Buffett’s words serve as a reminder of the importance of balanced trade and mutual prosperity in ensuring peace and stability worldwide.
