Berkshire Q2 Earnings Fall 4% as Trump Tariffs Hit Consumer Goods Revenue

Berkshire Hathaway, the conglomerate led by Warren Buffett, reported a 5.1% year-on-year decline in its consumer goods segment revenue for Q2 2025, driven by Trump-era tariffs and ongoing restructuring efforts [3]. The drop, reported at $189 million in revenue for the period, reflects the broader economic strain of protectionist trade policies on supply chains and input costs [5]. Analysts highlighted that delayed shipments, increased costs, and supply chain disruptions were central to the decline [5]. This follows a similar set of challenges the company faced in 2018–2019 during previous trade tensions [1].

The impact extended to Berkshire’s overall earnings, with operating earnings for Q2 2025 falling by 4% year-on-year to $11.16 billion, or approximately $7,760 per Class A share [1]. A separate report confirmed a 3.79% drop in operating earnings compared to the same period in 2024 [2]. Despite the decline, the company maintains a strong cash reserve of $344.1 billion [1]. However, the broader economic consequences of tariffs are evident, with WTOP reporting that Berkshire’s earnings for the first half of 2025 totaled $20.8 billion, an 8.8% drop compared to the same period in 2024 [7].

Berkshire’s struggles contrast with the performance of Brooks Sports, a division within the conglomerate, which reported an 18.4% revenue increase during the same period [1]. This divergence underscores the varied impacts of trade policies across different sectors. Buffett has previously criticized tariffs, advocating for free trade during the company’s annual meeting in May 2025 [8]. However, the tangible financial effects of delayed orders and rising costs continue to weigh on the company’s operations.

The broader investment landscape remains under scrutiny as analysts speculate that sustained tariff policies may affect more than just traditional sectors. While Berkshire’s financial resilience is notable, the long-term economic implications of these trade measures remain uncertain [1]. Analysts will continue to monitor the company’s performance closely in the coming quarters as the full impact of protectionist trade policies becomes clearer.

Sources:

[1] Reuters - https://www.reuters.com/business/trump-tariffs-hit-buffetts-berkshire-consumer-goods-businesses-2025-08-02/

[2] CNN - https://www.cnn.com/2025/08/02/business/berkshire-hathaway-earnings-warren-buffett

[3] GuruFocus - https://www.gurufocus.com/news/3029357/berkshire-hathaway-faces-tariff-challenges-brooks-sees-revenue-growth

[5] AInvest - https://www.ainvest.com/news/trump-tariffs-impact-buffett-consumer-goods-portfolio-navigating-risks-opportunities-protectionist-era-2508/

[6] WTOP - https://wtop.com/business-finance/2025/08/profits-drop-at-warren-buffetts-berkshire-hathaway-as-it-writes-down-its-kraft-heinz-investment/

[7] KION546 - https://kion546.com/news/2025/08/02/warren-buffetts-berkshire-hathaway-reports-4-drop-in-operating-earnings-in-q2/

[8] Yahoo - https://finance.yahoo.com/news/live/trump-tariffs-live-updates-japan-says-550-billion-investment-in-us-could-finance-taiwanese-chipmaker-trump-says-eu-deal-50-50-200619983.html