Legendary investor Warren Buffett railed against President Donald Trump’s tariffs on Saturday and the tumultuous way in which the president has rolled them out.
Buffett, 94, the chairman and CEO of Berkshire Hathaway, criticized the Trump administration’s use of tariffs as a trade strategy, arguing that employing trade as a "weapon" has antagonized international relations and destabilized global markets.
"Balanced trade is good for the world," and "trade should not be a weapon," Buffett said at Berkshire Hathaway's annual meeting in Omaha, Nebraska, which attracts some 40,000 people every year who want to hear from the billionaire magnate, including former Secretary of State Hillary Clinton, who was also present.
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"I don't think it's a good idea to design a world where a few countries say, ha ha ha, we've won," Buffett added. "I do think that the more prosperous the rest of the world becomes, ... the more prosperous we'll become."
"The Oracle of Omaha" emphasized the importance of balanced and mutually beneficial trade for all countries.
"It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done," Buffet added.
"We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best," he said.
Trump has argues that his tariffs are motivated by making trade fairer for the United States.
But despite concerns about the direction of the U.S. economy and the country itself, Buffett retained his traditional optimism, saying criticism of policies and the people who make them is par for the course.
"We're always in the process of change," he said. "I would not get discouraged... We're all pretty lucky."
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It’s not the first time the legendary investor has sounded off against the tariffs. In March, ahead of Trump’s official tariff announcement, Buffet said. Tariffs are "an act of war to some degree" and noted the U.S. has a lot of experience with them.
"Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em!" Buffett jokingly said. "And then what? You always have to ask that question in economics. You always say, 'And then what?'"
Berkshire Hathaway, a massive holding company that owns or invests in dozens of well-known businesses including Geico, Dairy Queen, Apple, Coca-Cola and American Express, reported a significant decline in first-quarter profits, earning $4.6 billion, down from $12.7 billion the previous year.
Operating earnings also decreased by 14% to $9.6 billion, reflecting unrealized losses on stocks such as Apple, with $860 million in insurance losses from Southern California wildfires being a major factor, the company said.
BNSF railroad, which is majority owned by Berkshire, saw earnings improvements.
Berkshire's cash stake grew from $334.2 billion at year-end. The company repurchased no stock for a third straight quarter and was a net seller of stocks for a 10th straight quarter.
Buffett downplayed concerns about Berkshire's cash, saying the company "came close" to spending $10 billion recently, but that buying opportunities don't come in an orderly fashion. That should happen over five years, he said, but not necessarily tomorrow.
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Berkshire's share price has so far weathered a turbulent period for markets, rising 18.9% this year while the Standard & Poor's 500 was down 3.3%.
Reuters contributed to this report.
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