Warren Buffett Warns Against Weaponizing Trade, Cites 2025 Q1 Profit Decline
1min read Warren Buffett, the renowned American investor and CEO of Berkshire Hathaway, recently expressed his concerns about the U.S. using trade as a weapon. During the company's annual shareholder meeting, Buffett addressed over ten thousand shareholders, emphasizing that the United States should not follow President Trump's approach of imposing tariffs to provoke global anger. He argued that such actions have disrupted global markets and that trade should not be weaponized. Instead, the U.S. should seek mutually beneficial trade relations with other countries.
Buffett's comments reflect a broader concern within the business community about the potential negative impacts of trade wars on the global economy. He highlighted that the Trump administration's recent trade policies, characterized by aggressive tariff measures aimed at various trading partners, have created an uncertain operating environment for businesses. The company's first-quarter financial report for 2025 showed a significant decline in operating profits, largely due to a sharp drop in insurance underwriting profits and the impact of a weakening dollar. This decline underscores the challenges faced by companies operating in a volatile trade environment.
In his remarks, Buffett also praised Apple CEO Tim Cook, further underscoring his support for constructive trade relations. This praise comes at a time when the tech industry is grappling with the implications of trade tensions, particularly between the U.S. and China. Buffett's endorsement of Cook and his company suggests a preference for diplomatic solutions to trade disputes, rather than confrontational tactics that could harm both economies.
Buffett's stance on trade is not new; he has long advocated for free and fair trade as a means of fostering economic growth and stability. His comments at the shareholder meeting serve as a reminder that while trade policies can be a powerful tool for influencing global markets, they must be used judiciously to avoid unintended consequences. The business community, including Berkshire Hathaway, is closely watching the developments in U.S. trade policy, hoping for a more balanced approach that benefits all parties involved.
