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No, Warren Buffett Did Not Endorse Trump’s Tariffs — 4 Things He Actually Said

May 3, 2025

5 min Read

Written by Jacob Wade

Edited by Cory Dudak

Berkshire Hathaway Shareholders, Omaha, USA - 03 May 2019

Nati Harnik / AP / Shutterstock.com

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Warren Buffett is a smart investor. He’s been investing since age 11 (in 1942), and has always been one to pay attention to macroeconomics and the stock market.

With Trump tariffs rocking global markets and causing massive volatility in the U.S. stock market, Buffett recently weighed in on the president’s latest moves. We’ll break down what he actually said after addressing controversial rumors, as well as how Buffett thinks tariffs will affect the economy going forward.

Rumors of Buffett Supporting Trump Tariffs ‘Are False’

There have been rumors circulating online that Warren Buffett has supported the Trump tariffs. This rumor started when the President himself shared a video on his Truth Social profile created by someone on X.

The video stated Trump is purposely crashing the market. However, the narrator of the video also stated “And this is why Warren Buffett just said, ‘Trump is making the best economic moves he’s seen in over 50 years.'”

The video has since been taken down, but rumors started to circulate quickly on other social media platforms. The problem was that Warren Buffett never said what the narrator claimed he did.

In fact, Buffett’s holding company Berkshire Hathaway even issued a statement claiming Buffett did not say these things. “All such reports are false,” the statement claimed.

So, What Did Buffett Actually Say About Tariffs?

Buffett has gone on record stating that tariffs are a “tax on goods.” He continued “I mean, the tooth fairy doesn’t pay ’em! And then what?”

Buffett would know the impact tariffs can have on goods. Back in 2018, when Trump instituted less-severe tariffs during his first term, Buffett talked with CNBC about how the cost of raw materials had gone up.

Speaking of the Benjamin Moore paint company he owns, he said “We sell paint; the can it comes in, that’s a lot more expensive than it was a year ago.”

Buffett also has stated that tariffs contribute to inflation. While Buffett acknowledged that inflation was there before Trump took office in 2017, he stated “The tariff situation will aggravate it significantly.”

Finally, in the most recent interview in March of 2025, Buffett said that the current tariffs are “an act of war, to some degree.” He also mentioned back in 2019 that a trade war could have far-reaching effects globally. “If we actually have a trade war, it would be bad for the whole world, and could be very bad, depending on the extent of the war,” he noted.

How To Invest Like Buffett During a Trade War

Warren Buffett isn’t a fan of trade wars — and the effects of inflation and increased cost of materials can massively impact some of the businesses he owns and is invested in.

In times of turmoil, Buffett’s holding company has taken a defensive stance — stacking large amounts of cash — waiting for a great buying opportunity. As of December 2024, Berkshire Hathaway was sitting on a record pile of cash at $334 billion.

However, Buffett says this is not preferred when thinking about long-term investing. He would rather be invested than sit on cash. In fact, Buffett said in his most recent annual letter in 2024, “Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.”

So, taking that to heart, investors should actually not be investing like Buffett currently, but continue to invest as the market is in turmoil. Dollar-cost averaging into good stocks and funds helps you avoid “timing the market,” and allows you to benefit from the market ups and downs during this trade war.

Long-term, the market continues to climb. And Buffett says to keep investing, even in the worst markets.

In a piece written by The New York Times during the 2008 Great Financial Crisis, Buffett said “fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.”

Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

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