Warren Buffett Reaffirms Anti-Tariff Stance, Citing Potential for "Trade War" and Global Instability

At Berkshire Hathaway’s annual shareholder weekend in Omaha, Nebraska, Warren Buffett, the company’s chairman and CEO, once again voiced his strong opposition to tariffs and trade barriers. During a question-and-answer session, the 94-year-old billionaire investor reiterated his long-held belief that tariffs are detrimental to global prosperity and can even be construed as "an act of war."

Buffett’s remarks came in response to the first question of the session, which directly addressed international trade, trade barriers, and tariffs. He didn’t mince words, stating, "There’s no question that trade can be an act of war, and I think it’s led to bad things, just the attitudes it’s brought out in the United States." He emphasized the importance of fostering global trade partnerships, advocating for a system where countries specialize in what they do best and engage in mutually beneficial exchange. "I mean, we should be looking to trade with the rest of the world, and we should do what we do best, and they should do what they do best," Buffett added.

This isn’t the first time Buffett has expressed his concerns about tariffs. In a March 2025 interview with CBS News, he similarly described tariffs as "an act of war, to some degree," and underscored their impact as "a tax on goods." This consistent messaging highlights the depth of Buffett’s conviction on the matter and his belief that tariffs ultimately harm consumers and businesses alike.

To address the issue of trade imbalances, Buffett revisited his "import certificates" proposal, which he originally outlined in a 2003 Fortune essay. Under this system, U.S. exporters would earn import certificates, which they could then sell to companies seeking to import goods into the U.S. The goal of this mechanism is to balance trade flows and prevent trade deficits by creating a market-based incentive for exports.

Buffett emphasized the benefits of free trade for all nations, stating, "We want a prosperous world." He argued that a globalized and interconnected economy benefits everyone, promoting economic growth and stability. Furthermore, he raised concerns about the geopolitical implications of protectionist trade policies. "With eight countries with nuclear weapons, including a few that are what I would call quite unstable, I do not think it’s a great idea to try and design a world where a few countries say, ‘Ha, ha, we’ve won,’ and other countries are envious," Buffett warned. He suggested that trade wars could exacerbate tensions and lead to dangerous international rivalries.

He explicitly stated "Trade should not be a weapon," and argued that the U.S. does not need to engage in a trade war. He pointed to the nation’s remarkable economic success over the past 250 years, saying, "We have become an incredibly important country, starting from nothing, 250 years ago. There’s nothing anything like it." He believes that the U.S. should leverage its economic strength to promote global prosperity rather than resorting to protectionist measures.

He further added, "The more prosperous the rest of the world becomes, it won’t be at our expense. The more prosperous we will become, and the safer we’ll feel, and your children will feel someday." This statement reflects Buffett’s long-term vision of a world where economic interdependence fosters peace and stability.

The potential negative consequences of tariffs and trade uncertainty were also highlighted in Berkshire Hathaway’s quarterly report issued May 3. The company acknowledged its inability to reliably predict the impact of trade policies on its businesses, stating, "We are currently unable to reliably predict the potential impact on our businesses, whether through changes in product costs, supply chain costs and efficiency, and customer demand for our products and services." This uncertainty underscores the challenges that tariffs pose to businesses, making it difficult to plan and invest for the future. Increased costs due to tariffs would increase costs of production, which in turn would decrease the total number of goods produced.

Buffett’s stance against tariffs is rooted in his fundamental understanding of economics and his belief in the power of free markets. He recognizes that trade barriers distort market signals, lead to inefficiencies, and ultimately harm consumers. By advocating for free trade, Buffett is promoting a vision of a global economy that is both prosperous and peaceful. His continued criticism of tariffs serves as a reminder of the importance of open markets and international cooperation in fostering economic growth and stability.

The contrast with recent economic news serves to highlight Buffett’s point of view. For instance, McDonalds has cited a decline in U.S. sales, the worst since 2020. McDonalds attributed the decline to the volatile economy. Therefore, Buffett’s point that tariffs cause uncertainty seems pertinent.

Buffett’s comments carry significant weight due to his reputation as one of the most successful investors in history. His insights on economic issues are widely respected, and his opinions often influence policy debates. By consistently speaking out against tariffs, Buffett is using his platform to advocate for policies that he believes will benefit the global economy and promote international stability. This long standing stance is not just a passing comment, but an important signal coming from one of the most respected voices in the business world. His views reflect a broader concern among economists and business leaders about the potential damage that tariffs can inflict on the global economy.