Warren Buffett Warns Against Tariffs, Calls Trump’s Trade Strategy a Risk to U.S. Interests

Warren Buffett did not pull punches when dealing with the subject that took center stage at his company’s annual shareholder meeting: the U.S. trade policy under President Donald Trump. Speaking to a full house in Omaha, the 94-year-old investor expressed disapproval so strong it could be described as nearly the opposite of buffett-ing. He is no fan of using tariffs as a device of political persuasion. Our trade policies, he said, in effect using taxes and costs to try to force other nations to change their behavior, are a big mistake.

He cautioned that agitating international friends and partners through combative trade actions is a grave blunder. In his view, the U.S. shouldn’t take a combative position with the world market, particularly when so many countries are peering closely at American behavior. Buffett worries that weaponizing economic nationalism does more to estrange than it does to bind.

Global Trade: A Path to Shared Prosperity

Buffett reiterated his dedication to economic teamwork. He expressed this in the context of the global trading system: the U.S. and world economy would be better off if the U.S. were to participate fully in international trade and commerce rather than attempt to wall itself off from would-be trading partners. His basic point: let the U.S. do what it does best, let others do what they do best, and then allow all of us, citizens of the globe, to participate in a peaceful prosperity.

Contrasting with the recent trend of populist economic policy that advocates for less global economic engagement, Warren Buffett has called for more openness, as he believes that this contributes to global prosperity. He thinks that global prosperity makes for a far more secure world and that this has ample, well-understood economic rationale.

Cash Reserves and Caution in the Market

Even while critiquing policy, Buffett painted an optimistic picture of America’s future. He said he would choose to be born in the U.S. again, underlining a long-held faith in the country’s resilience. However, he acknowledged a lack of compelling investment opportunities present, that's why Berkshire Hathaway is holding a record 29 lakh crore rupees (USD 347.7 billion) in cash.

Even with the stockpile, Buffett expressed confidence that better investment opportunities will someday appear. He characterized the cash reserve not as sign of hesitation, but as a preparation for future prospects that better match Berkshire's disciplined investment approach. Strategic patience, it seems, remains at the heart of Buffett's investment philosophy.

The annual meetings of Buffett have long been known for their insights and for their wit, and this year was no exception. Speculation, some of it quite fanciful, has developed lately about what might happen after he is no longer here. Buffett's presence was a comfort to the tens of thousands who came to hear him, some from halfway across the world.