⚈ Warren Buffett called US trade tariffs a mistake, referring to economic and global risks.
⚈ Economists warn that tariffs can cause a recession and a mirror in the 1930s.
⚈ Buffett is still cautious, with open trade by promoting $ 325 billion in cash.
Warren Buffett, founder of Berkshire Hathaway (NYSE: BRK.A), has hit trade tariffs founded by US President Donald Trump, calling them “error”.
According to Omaha oracleThe tariffs, which have caused huge volatility in the stock market, is a mistake in the US economy, he said that at each year's annual meeting of Berkshire Hathaway every year of shareholders on May 3, 2025.
He emphasized the importance of global trade and cooperation and warned that protectionist policies could damage American economic views and international relations.
Buffett claimed that US isolation through tariffs risks alienating the global community, while neglecting the mutual advantages of international trade.
“This is, in my opinion, a big mistake if you have 7.5 billion people who don't like you particularly well, and you have 300 million who are on the subject.
He emphasized that countries should focus on their strengths and goods and services to maximize efficiency and prosperity.
Impact of tariffs on economic harmony
A billionaire investor stated that tariffs are disturbed by economic harmony and foster studies that potentially increase tension in the polarized world.
“There is no doubt that trade, trade may be a war. I think it is caused by bad things. Attitudes in the United States, I think we should look for the rest of the world and we should do what we do best and they should do what they do best,” Buffett said. ”
Buffett's criticism corresponds to the warning of economists that tariffs can slow down global growth and disrupt supply chains. For example, as Finbold announced, economist Steve Hanki believes that the US economy has a 90% opportunity to go into the recession, partly due to Trump tariffs.
He noted that the current trade policy resembles a scenario that led to a market accident in the 1930s, partly triggered by Smoot-Hawley tariff
Stock market
In the midst of these concerns, the stock market continues, with the comparative S&P 500 ending the last trading session with Green for nine consecutive days, the longest belt since 2004. But economists like David Rosenberg believe that this momentum can hide the underlying feelings.
Despite the sectors of the economy, Buffett is still a determined advocate of the long -term optimism of America's economic potential if it includes open trade.
His takes when Berkshire Hathaway sits over $ 325 billion on a record pile of cash. This huge reserve points to a cautious approach to Buffett in the midst of economic uncertainty.
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