'Big mistake...': Warren Buffett warns 'trade should not be a weapon' as tariff war rattles markets

Warren Buffett didn’t mention Donald Trump by name, but his message at Berkshire Hathaway’s annual shareholder meeting was unmistakable. Slapping tariffs on trading partners, he said, is a strategic misstep that alienates allies and stirs global resentment. “Trade should not be a weapon,” Buffett warned, as he took aim at the White House’s sweeping tariffs that have rattled markets and strained international relations.

“It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done — I don’t think it’s right, and I don’t think it’s wise,” Buffett said, offering his bluntest take yet on the administration’s trade war approach.

The critique followed the White House’s surprise rollout of steep tariffs — the highest in a generation — sending shockwaves through global markets. While President Trump later announced a 90-day pause for most countries, China remained an exception, deepening tensions.

“I do think that the more prosperous the rest of the world becomes, it won’t be at our expense,” Buffett added. “The more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday.”

Asked directly about Trump’s protectionist stance, Buffett didn’t flinch: “We should do what we do best and they should do what they do best. We want a prosperous world. In a country with nuclear weapons, and some of them unstable, I don’t think it’s a great idea for some countries to say ‘we won’ and others feeling envious.”

On investing, Buffett reiterated his belief that active investing is inherently opportunistic and not suited for the passive investor. He acknowledged the persistent unpredictability of the market landscape.

Turning to real estate, Buffett didn’t mince words: it’s tougher than stocks. “When real estate gets in trouble,” he said, “you deal with more than a few people.” He sees greater potential in stocks, though he acknowledged the emotional value tied to real estate investments.

As markets digest geopolitical uncertainty, Buffett’s voice — now 94 — remains a compass for investors. His latest counsel came as Berkshire Hathaway’s first-quarter report flagged “considerable uncertainty” from tariffs and geopolitical events, adding that the conglomerate could not yet predict their impact.