Speaking at the 2025 Berkshire Hathaway (BRK.B) (BRK.A) Annual Shareholders Meeting, CEO and Chairman Warren Buffett offered a candid reflection on the current state of global trade and its broader implications. With over 40,000 attendees gathering in Omaha and millions more watching online, Buffett’s words carried weight — not just for investors, but for policymakers, economists, and business leaders grappling with an increasingly fractured global economy.
“There’s no question that trade can be an act of war and I think it’s led to bad things,” Buffett said during the Q&A session. “Just the attitudes it’s brought out.”
While Buffett’s tone was calm and analytical, the implications of his remarks were hard to miss. His observation comes amid renewed global tensions — particularly between the U.S. and China — where economic measures such as tariffs, export controls, and investment restrictions have become tools of strategic leverage. Over the past year, Washington has expanded semiconductor restrictions and scrutinized outbound investments, while Beijing has responded with export curbs on critical minerals and supply chain reconfigurations of its own.
Buffett’s concern wasn’t focused on the technicalities of these policies, but on the ripple effects they generate — including erosion of trust, deterioration of diplomacy, and the rise of adversarial postures.
“We should be looking to trade with the rest of the world,” he continued. “And we should do what we do best and they should do what they do best.”
A Call for Economic Interdependence Over Isolation
This emphasis on specialization and mutual exchange is rooted in classic economic theory — the principle of comparative advantage. Buffett’s comments serve as a reminder that trade, at its best, is not about domination but about collaboration: countries producing what they’re best at and exchanging goods in a way that raises overall prosperity.
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That vision has been challenged in recent years. Supply chain disruptions during the pandemic and rising geopolitical tensions have led to a wave of “reshoring” and “friendshoring” policies, where nations seek to localize or regionalize production for security reasons. While these measures may reduce some vulnerabilities, they also risk reducing efficiency, increasing costs, and sowing division.
Buffett, ever the pragmatist, didn’t call for blind globalism. But his remarks reflect a belief that cooperation yields more enduring benefits than confrontation, and that pursuing economic “victory” at another nation’s expense is a short-sighted strategy.
“We want a prosperous world,” he said. “I do not think it’s great to try and design a world where a few countries say ‘hahaha we’ve won’ and other countries are envious.”
Buffett’s Philosophy in Practice at Berkshire
The philosophy embedded in Buffett’s comments is echoed in the way Berkshire Hathaway itself operates. The company’s investment portfolio is filled with globally integrated businesses — from Apple (AAPL) and Coca-Cola (KO) to American Express (AXP) — that rely on international supply chains, customers, and market access. These firms thrive not in isolation, but through global connectivity.
Moreover, Buffett’s long-term investing style depends on economic stability and predictability. Trade wars, geopolitical spats, and protectionist shocks introduce the kind of systemic risk that’s difficult to hedge against — even for a company sitting on over $347 billion in cash.
In that sense, Buffett’s comments on trade are not just geopolitical musings; they are deeply linked to how he thinks about value creation, risk, and sustainable growth. Berkshire’s conservatism in recent quarters — avoiding major acquisitions and favoring yield-generating cash equivalents — reflects this caution in an environment of elevated uncertainty.
A Measured Message in a Volatile Time
Buffett’s remarks also stand out because of what they are not: they are not inflammatory, partisan, or alarmist. Instead, they offer a thoughtful counterpoint to an increasingly polarized global narrative — one that too often frames trade as a weapon or contest rather than a mechanism of shared benefit.
By pointing out that trade “can be an act of war,” Buffett is not condemning trade itself, but warning that when it’s wielded as a tool of dominance, it can have corrosive effects — on alliances, on attitudes, and ultimately on prosperity.
His call for a world where each nation “does what they do best” and contributes to a shared economic fabric is not novel, but it is increasingly rare. And his rejection of the idea that prosperity should come at the expense of envy or triumphalism reinforces a vision of capitalism rooted not just in profit, but in purpose.
Looking Ahead
As global investors weigh the risks of protectionism, inflation, and great-power competition, Buffett’s words serve as a subtle reminder that investing is not just about numbers — it’s about the underlying systems that enable commerce, growth, and stability.
In a time when trade has become a battleground and economic alliances are strained, Buffett is still betting on the long game: one where cooperation, not conflict, delivers the highest returns.
