Buffett Criticizes Trade War for the First Time: It's a Big Mistake That 7.5 Billion People Don't Like You

[Text/Observer Network by Shao Yun] Comprehensive reports on May 3 from The Wall Street Journal, the Associated Press and others stated that Warren Buffett, CEO of Berkshire Hathaway and the 94-year-old "Oracle of Omaha," attended the annual shareholders' meeting that day. Besides dropping the bombshell news about his retirement at the end of this year, he also clearly criticized President Trump's new tariff policy for the first time in public, stating that it increases the risk of global instability. He emphasized that trade should not be used as a weapon.

On May 3 local time, Berkshire Hathaway held its 60th annual shareholders' meeting in Omaha, Nebraska, USA. It was reported that 19,700 people attended the meeting this year, setting a new record. In the "main event" question-and-answer session of the conference, the first question asked by the audience was related to tariffs.

Reportedly, although Buffett said that it is best for countries to maintain a balanced trade, he believed that Trump's broad-based tariff measures are not the right approach but instead increase the risk of global instability. "I think creating a world where only a few countries can say 'ha ha, we win' while others can only envy is not a good idea," he said. "Trade should not be used as a weapon."

He added, "In my opinion, if 7.5 billion people dislike you while 300 million people boast about their achievements, that is a huge mistake." Buffett advocates that the United States also benefits from the prosperity of global trade. "We should trade with other countries in the world. We should do what we are best at, and they should do what they are best at."

Buffett speaks at the annual shareholders' meeting - CNBC (U.S. Consumer News and Business Channel)

Some U.S. media reported that Buffett's remarks represent his first clear public criticism of Trump's tariff policies during his administration so far. Previously, Berkshire Hathaway mentioned in its Q1 2025 financial report released on March 3 that tariffs and other geopolitical events have brought "significant uncertainty" to the group.

An investor also asked Buffett about an article he published in Fortune magazine in 2003. In the article, Buffett suggested that the U.S. achieve trade balance through the issuance of "import certificates." Exporters in the U.S. could obtain these certificates and sell them to importers who wish to bring goods into the U.S., which would help lower prices and enhance competitiveness of American products in the international market.

In response, Buffett quoted the comment made by Charlie Munger, former vice president of Berkshire Hathaway and late friend and partner, "Charlie thought this idea was somewhat like a 'Rube Goldberg' device," Buffett said. "This indeed has some tricks involved, but it is much better than what is currently being done... just look at the emotions it has stirred up in the U.S."

The Wall Street Journal noted that this year's Buffett shareholders' meeting coincides with a period of market and global business turbulence. Since Trump announced his so-called "reciprocal tariffs" plan a month ago, the trade war he initiated has dominated headlines across major media outlets. "Buffett has always avoided discussing tariffs, and people are eager to hear his thoughts. He obviously knows something we don't know because he is hoarding cash," a participant at the conference told Reuters.

Previously, when "reciprocal tariffs" caused a sharp drop in the three major U.S. stock indexes, a rumor spread on social media claiming that Buffett supported Trump's economic policies. A related video was even retweeted by Trump himself. At that time, Berkshire Hathaway quickly issued a statement to refute the rumor, and Buffett himself stated that he would not comment on the market, economy, or tariffs until the annual shareholders' meeting on May 3.

It is worth noting that in March this year, just before Trump announced "reciprocal tariffs," Buffett, in an interview with CBS, unusually admitted that tariffs constituted "acts of war," which would lead to "commodity taxes."

According to Newsweek, this is not Buffett's first public criticism of Trump's tariff agenda. In 2018 and 2019, he wrote long articles warning that these conflicts might have negative impacts on the global and U.S. economies.

However, when asked about the state of the U.S. economy on the CBS program, Buffett said, "I cannot talk about this. I think it is the most interesting topic in the world, but I will not discuss it. I cannot talk about it. I really cannot."

At the shareholders' meeting on May 3, Buffett also downplayed concerns about the U.S. stock market and economy. He said that the recent market fluctuations were "not much." "This is not a severe bear market, nor anything similar," he said. "We are always changing," he added. "I am not discouraged... If I were born today, I would negotiate in the womb until they said you can go to America. We are all lucky."

On April 30, the U.S. Department of Commerce's preliminary estimate showed that the U.S. GDP contracted at an annual rate of 0.3% in the first quarter of 2025, exceeding expectations, marking the first contraction in nearly three years. Bloomberg analysis suggests that this marks the initial impact of Trump's tariff policies.

Despite Trump's strong defense and blaming the weak economic data on former President Biden, U.S. media reports suggest that the latest data has intensified pessimism about the U.S. economy. Some Wall Street economists expect that Trump's trade policies will further slow down U.S. economic growth in the second half of this year. The International Monetary Fund (IMF) previously estimated that U.S. economic growth for this year would be 1.8%, down from the 2.7% forecast in January.

The Wall Street Journal noticed that CEOs of companies such as American Airlines, PepsiCo, and Procter & Gamble recently issued warnings that Trump's unpredictable tariff policies are disrupting business plans and shaking consumer confidence. General Motors withdrew its 2025 profit forecast on April 29 due to car tariffs. Highsmith CEO Noel Wallace recently lowered the full-year profit outlook, stating, "Uncertainty leads to cautious anxiety among consumers."

In addition, the dual pressures of tariffs pushing up inflation and weakening economic momentum have also put the Federal Reserve in a dilemma. Federal Reserve Chairman Powell said in mid-April that tariffs in the short term could lead to "rising prices and unemployment," creating a monetary policy predicament: any interest rate hike to curb inflation might worsen unemployment, while loose measures might push up prices.

The New York Times commented that the 0.3% contraction in the U.S. economy in the first quarter compared to the 2.4% growth in the previous quarter formed a striking contrast. Economists generally predict that as tariffs push up prices and policy uncertainty suppresses corporate investment, spending and investment will slow down in the coming months. Ben Hesson, an economist at S&P Global Market Intelligence, said, "There are many reasons to expect continued weakness in the U.S. economic trend."

This article is an exclusive piece by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7500408990128456202/

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