Warren Buffett blasts tariffs as economic self-sabotage that hurts America more than its trading partners. At Berkshire’s 2025 meeting, he called trade wars “stupid” and warned against weaponizing commerce. The math is simple: America can’t prosper by making enemies of 7.5 billion people worldwide. With unemployment climbing to 4.2% and markets tanking on tariff news, Buffett’s stark message rings clear – protectionist policies are playing with economic fire. The deeper story reveals even more alarming trends.
How is Warren Buffett taking America’s latest tariff spree? Not well. The Oracle of Omaha has been brutally honest about his concerns, especially after Trump’s administration maintained hefty tariffs on major trading partners and slapped a whopping 145% import tax on China.
Buffett’s message is clear: trade wars are stupid. At the 2025 Berkshire Hathaway annual meeting, he didn’t mince words about the “tumultuous way” tariffs were rolled out. Though he diplomatically avoided naming Trump directly, his criticism of recent trade policies was about as subtle as a sledgehammer.
The numbers paint a grim picture. Unemployment has crept up from 3.4% in 2023 to 4.2% by April 2025. Inflation remains stubbornly above the Fed’s 2% target at 2.6%. During this period, Berkshire reported that operating earnings decreased to $9.6 billion, reflecting broader economic challenges. These economic indicators demonstrate how business cycles can significantly impact national prosperity.
And now, with tariffs threatening to jack up prices even further, Buffett warns we’re playing with economic fire. The announcement came as a surprise during his last investor conference as he prepares for Greg Abel to take over as CEO.
What really gets under Buffett’s skin is the shortsighted thinking behind these trade policies. He scoffs at the idea that America wins when other countries lose. In fact, he argues the opposite: a prosperous world means a prosperous America. Pretty basic math, really.
The current situation isn’t pretty. Despite Trump’s 90-day suspension of some reciprocal tariffs in April 2025, we’re still maintaining 25% tariffs on Canada and Mexico (yes, our neighbors), plus a 10% baseline import duty on pretty much everything else.
The markets initially tanked on the news – shocking absolutely no one.
Buffett’s perspective is candidly straightforward: tariffs are “an act of war” that transform trade into a weapon.
He finds it particularly absurd that 300 million Americans might celebrate while making 7.5 billion people worldwide resent us.
The Federal Reserve’s attempts to manage this mess – including a 1% rate cut in fall 2024 – haven’t exactly inspired confidence.
The bottom line? Buffett sees these tariffs for what they are: a self-inflicted wound on America’s economic future. And he’s not afraid to say so.
