Warren Buffett’s Berkshire Hathaway (BRK.B) boasts a record so good that it’s made him one of the world’s wealthiest people, with a $150 billion net worth.
Since 1965, Berkshire Hathaway has produced a staggering compounded annual return of 19.9%—nearly double the S&P 500. Buffett’s returns are even more impressive because he generally avoided high-growth stocks, instead favoring value-oriented ones.
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His success and knack for delivering folksy wisdom have made him one of the most influential portfolio managers of all time, as evidenced by the tens of thousands of people who flock to Berkshire Hathaway’s three-day annual meeting every year.
Buffett has hosted the event, unofficially dubbed ‘Woodstock for capitalists,’ for over 60 years, and his comments during his marathon question-and-answer session are packed with interesting takeaways on markets, stocks, and the economy.
This year was no different, as Buffett took time on the stage to address the ongoing debate over tariffs and the escalating trade war.
Warren Buffett offered thoughts on the trade war during Berkshire Hathaway’s annual meeting on May 3, 2025.
Global trade war erupts as U.S. economy weakens
The U.S. economy was already showing signs of wear before President Donald Trump unveiled harsher-than-expected reciprocal tariffs on April 2, so-called ‘Liberation Day.’
Unemployment had already begun climbing from its 2023 low of 3.4% even as sticky inflation crimped consumers’ budgets, causing them to shift spending to essentials from discretionary items. The unemployment rate in April was 4.2%, according to the Bureau of Labor Statistics.
The slowing jobs market prompted the Fed to cut rates by 1% last Fall, but slowing progress in reducing inflation has since put the kibosh on rate cuts this year. PCE inflation, excluding volatile food and energy, was 2.6% in March, above the Fed’s 2% target.
The dynamic has put the economy in a precarious position, likely worsened by widespread tariffs that have sparked fierce debate.
Tariff proponents argue they’re the best tool for wrestling manufacturing back to America. Opponents say tariffs will increase prices, driving inflation higher, and sending our economy into a tailspin.
The reality may be in the middle, but much will depend on how trade negotiations with major trading partners, including China, pan out.
While President Trump paused most reciprocal tariffs for 90 days on April 9 to negotiate trade deals, he left in place:
25% tariffs on Canada, Mexico, and autos. A 10% baseline import tax.A staggering 145% import tax on China.
What’s next for the economy is uncertain, but consumer sentiment is sagging, and data on manufacturing and services is worrisome.
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The University of Michigan’s Consumer Sentiment Survey declined by 8% to 52.2 in April from March to its fourth-lowest level for April since 1952. Meanwhile, inflation expectations for the coming year jumped to 6.5% from 5% last month.
ISM’s Manufacturing PMI, a measure of factory activity, fell to 48.7 in April from 50.9 in January, signaling contraction. While the April Services PMI won’t be released until May 5, it fell to 50.8 in March from 52.8 in January.
Warren Buffett delivers blunt message on tariffs and trade wars
Warren Buffett doesn’t appear overly concerned about America’s trade deficit, given his comments at Berkshire Hathaway’s annual meeting this year.
“I do think that the more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday,” said Buffett.
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Buffett suggested that a U.S. trade war could work to our disadvantage if it means the world turns against us.
“It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done – I don’t think it’s right, and I don’t think it’s wise,” Buffett said.
He also suggested that tariffs can significantly impact foreign countries, creating bigger problems. Buffett said that tariffs “can be an act of war.”
He also shared his opinion on how the U.S. should approach global trade.
“You can make some very good arguments for the fact that balanced trade is good for the world,” said Buffett. “We should be looking to trade with the rest of the world, and we should do what we do best, and they should do what they do best.”
Buffett isn’t alone in claiming that tariffs and trade wars are a problem.
Billionaire fund manager Ken Fisher, founder of Fisher Investments, with $295 billion in assets under management, has been especially vocal on the risks associated with tariffs.
“Tariffs always hurt the country that imposes them more than they hurt the country that they’re imposed upon,” said Fisher in April.
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