Berkshire Hathaway's Buffett Criticizes Trump's Tariffs, Cites 2025 Q1 Profit Decline

Warren Buffett, the CEO of Berkshire Hathaway, delivered his most direct criticism to date of the Trump administration's trade policies during the company's annual shareholder meeting. Buffett, known for his measured public statements, did not name Trump directly but made it clear that he believes the imposition of tariffs on a global scale is a significant mistake. He emphasized that trade should not be used as a weapon, stating that the current approach of imposing tariffs is disrupting global markets. Buffett argued that while achieving a balance in international trade is an ideal goal, the method of using widespread tariffs to push this agenda is flawed. He believes that a world where more countries prosper is a safer world. He advocated for a system where countries engage in trade based on their strengths, rather than using tariffs as a means of coercion.

Buffett's comments on trade policy come at a time when Berkshire Hathaway's financial performance has been impacted by the economic uncertainties caused by tariffs and other geopolitical risks. The company's first-quarter operating profit for 2025 showed a significant decline, largely due to a sharp drop in insurance underwriting profits and the impact of a weaker dollar. Despite these challenges, Buffett remains optimistic about the long-term prospects of the company and the global economy. In his remarks, Buffett also reiterated his commitment to philanthropy, stating that he has no intention of selling any of his Berkshire Hathaway shares and will eventually donate them to charitable causes. This announcement underscores his long-standing dedication to giving back to society, a principle that has guided his investment philosophy throughout his career.

During the meeting, Buffett also addressed the concept of import certificates, a proposal he first introduced in a 2003 column. He designed this idea to balance trade and believes it is a better solution than the current discussions on the matter. Buffett stated that the import certificates would help reduce the U.S. trade deficit more effectively than the current policies. He also highlighted that the prosperity of other nations does not come at the expense of the U.S. Instead, he believes that a more prosperous world leads to greater security and stability for everyone, including future generations.

Buffett's remarks were met with applause from the audience. Despite his previous statement that he would not support any political candidates, he has not hesitated to express his views on trade policies. Earlier this year, he described tariffs as "an act of war." Berkshire Hathaway, in its financial report released on the same day, warned that tariffs and other geopolitical events have introduced "significant uncertainty" for the company. The report stated that the company is unable to predict the potential impact of tariffs on its business, which spans various sectors including insurance, railroads, energy, and manufacturing. The company's performance is closely watched as it reflects the overall health of the U.S. economy. Analysts predict that tariffs could increase repair costs for Geico, one of Berkshire's subsidiaries.

Berkshire Hathaway has maintained a defensive stance for an extended period, selling stocks for ten consecutive quarters. In 2024, the company sold over 134 billion dollars in stocks, primarily reducing its holdings in Apple and Bank of America. This has resulted in a record cash reserve of 347 billion dollars by the end of March. The company's cautious approach reflects its concern over the potential negative impacts of tariffs on its business operations and investment portfolio.