Buffett says tariffs are a big mistake; we should do what we do best, they should do what they do best

Warren Buffett (File)

Warren Buffett cautioned against the use of tariffs, calling them “a big mistake” and warning that trade should not become a weapon. Speaking at the Berkshire Hathaway Annual Meeting in response to a widely submitted question, Buffett drew a clear distinction between tariffs and a little-known idea he floated in 2003: import certificates.

“The trade should not be a weapon,” Buffett said. “The United States, we’ve won. I mean, we have become an incredibly important country, starting from nothing… and it’s a big mistake, in my view, when you have seven and a half billion people that don’t think it’s right, and they don’t think it’s wise.”

The question from Bill Mitchell, read by moderator Becky Quick, asked whether Buffett’s past support for import certificates contradicted his recent description of tariffs as “an act of economic war.” Buffett replied, “Yeah, the import certificates were distinct, but their goal was to balance imports against exports, and so that the trade deficit would not grow in an enormous way.”

Though the idea gained no traction—“we did not have a great demand for the copies we sent you,” he joked—Buffett stood by the principle of balanced trade. “I think you can make some very good arguments for the fact that balanced trade is good for the world, and the more balanced trade there is, the better.”

Buffett reiterated his support for global commerce: “We should be looking to trade with the rest of the world, and we should do what we do best, and they should do what they do best.”

While dismissing any legacy status for his idea—“don’t expect my import certificate idea to go down there with Adam Smith’s qualifications or anything”—Buffett maintained that a prosperous world is in everyone’s interest. “The more prosperous the rest of the world becomes… the safer we’ll feel, and your children will feel someday.”