Berkshire Hathaway's CEO, Warren Buffett, has commented on U.S. President Donald Trump's tariff policies during the company's annual meeting in Omaha. He stated that trade should not be used as a weapon, adding that the United States should seek to trade with the rest of the world.
In Berkshire's first-quarter earnings statement, released before the meeting, it was revealed that the company's operating profits fell by about 14 percent compared to the previous year, reaching $9.6 billion. Consequently, the cash reserve increased to $347.7 billion, as the company faced difficulties investing it. Berkshire warned that tariffs could negatively impact its broad portfolio of businesses.
The conglomerate, which operates in sectors ranging from insurance to railroads, energy, and manufacturing, is closely watched as it offers a comprehensive view of the state of the U.S. economy. Berkshire stated in its announcement that it currently cannot reliably foresee the potential impact of tariffs on its businesses, including changes in product costs, supply chains, and customer demand.
According to Buffett during the meeting, it is reasonably possible that there will be adverse consequences in most, if not all, of the company's operating businesses, as well as in its stock portfolio. Although Buffett mentioned he did not endorse any political candidate last year, he has previously made indirect comments on the subject, such as when he referred to tariffs as "an act of war."
The tariffs announced by Trump on April 2 have had a significant impact on stock markets and the investment business. These tariffs are expected to result in higher repair costs for auto insurers like Geico, owned by Buffett.
