Buffett Warns on Tariffs as Berkshire Profits Drop Amid Wildfires and Uncertainty

Warren Buffett has reignited debate over U.S. trade policy, voicing sharp criticism of former President Trump’s tariffs and warning investors that "trade should not be a weapon." Speaking at the annual Berkshire Hathaway shareholders meeting in Omaha, Buffett cautioned that using tariffs as political leverage could undermine long-term economic stability.

His comments come as Berkshire reported a larger-than-expected drop in operating earnings, with the company citing both wildfires and uncertainty around trade policy as key headwinds. Still, Berkshire’s cash reserves soared to a record $347.7 billion, signaling Buffett is biding his time for better-priced investment opportunities.

Despite the earnings miss, thousands of shareholders flocked to see the “Oracle of Omaha” live, affirming Buffett’s continued influence. His defense of global trade and call for economic cooperation over confrontation struck a chord with many at the CHI Health Center, especially amid volatile geopolitical tensions and protectionist rhetoric.

With Buffett on stage and global headlines buzzing, investors now await how markets will respond to renewed concerns over tariffs and trade disruptions.

Market Impact Summary – Buffett’s Trade Warning & Berkshire Earnings

Equities

·      Berkshire Hathaway (BRK.A/BRK.B): Likely short-term pressure due to disappointing earnings and wildfire-related losses. However, long-term bulls may view record cash reserves as a buying signal.

·      Industrials & Exporters: Companies heavily reliant on global trade (e.g., Caterpillar, Boeing) could see sentiment dip if tariff fears resurface.

·      Utilities & Insurance: Wildfire-related claims may impact insurance sector earnings—watch names like Allstate and Travelers.

Currencies

·      USD: May face slight bearish pressure if markets price in uncertainty tied to U.S. trade policy. Risk-off sentiment may support safe havens like CHF and JPY.

Commodities

·      Gold (XAU/USD): Could see upward momentum as investors hedge against geopolitical and trade-related risks.

·      •Oil: No direct impact, but broader risk aversion may pressure prices.

Investor Sentiment

·      Buffett’s criticism of tariffs may reignite debate on U.S. trade policy, contributing to volatility in global markets, especially if political leaders respond.