Warren Buffett Criticizes Trump Tariffs, Endorses Greg Abel as Successor at Berkshire Hathaway Meeting; S&P 500 Recovers

At Berkshire Hathaway’s annual meeting in Omaha, Warren Buffett criticized the Trump administration's tariff policies, warning they risk global economic stability. He also named Greg Abel as his successor, marking a leadership transition. The S&P 500 has rebounded from April losses due to Trump's tariffs, achieving its longest winning streak in two decades. Buffett emphasized that tariffs act as a consumer tax and should not be used as a geopolitical weapon. Abel, head of Berkshire's non-insurance operations, is seen as ready to lead the conglomerate.

Buffett: “Trade Should Not Be a Weapon”

Speaking before a crowd of nearly 40,000 attendees—including former Secretary of State Hillary Clinton—Buffett used his platform to denounce the Trump administration’s approach to global trade. “Balanced trade is good for the world,” he said. “Trade should not be a weapon.”

Buffett criticized the rollout of the tariffs as chaotic and antagonistic, arguing that such policies alienate global partners and destabilize markets. “It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” he said. “We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best.”

He went further, calling tariffs “an act of war to some degree,” and dismissed the idea that they are cost-free. “The Tooth Fairy doesn’t pay them,” he quipped, emphasizing that tariffs ultimately function as a tax on consumers.

Despite his criticism, Buffett maintained his characteristic optimism. “We’re always in the process of change,” he said. “I would not get discouraged... We’re all pretty lucky.”

Greg Abel Named as Successor

In a long-anticipated move, Buffett officially named Greg Abel, vice chairman of Berkshire Hathaway and head of its non-insurance operations, as his successor. Abel, who has overseen Berkshire Hathaway Energy and the BNSF Railroad since 2018, was described by Buffett as “in all respects” ready to take over as CEO “tomorrow.”

“I don’t have a second choice,” Buffett said. “But I have also seen Greg in action, and I feel 100% comfortable. Greg is inheriting a good business, and I think he’ll make it better.”

Abel also serves on the boards of Kraft Heinz, the Mid-Iowa Council of the Boy Scouts of America, and Drake University. His leadership style and operational experience have earned him the confidence of both Buffett and Berkshire’s board.

S&P 500 Rebounds After Tariff-Induced Slump

The U.S. stock market, which had been rattled by President Trump’s April 2 announcement of sweeping “reciprocal” tariffs, has staged a dramatic recovery. The S&P 500 initially plunged more than 10% in the days following the announcement, marking one of its steepest short-term declines since World War II. At its lowest point, the index was down over 19% from its February highs.

However, by early May, the S&P 500 had not only recovered but surpassed its pre-tariff levels, rising 0.3% above its April 2 close. The rally was fueled by strong corporate earnings, a robust April jobs report, and growing investor confidence that the worst of the tariff uncertainty had passed. The index has now logged nine consecutive days of gains, its longest winning streak since 2004.

Timeline and Scope of Trump’s Tariffs

The latest round of tariffs, announced on April 2, 2025, marked a significant escalation in the Trump administration’s trade strategy. The plan included a 10% blanket tariff on all imports, with country-specific rates reaching as high as 145% on Chinese goods, 25% on Canadian and Mexican imports, and a 54% levy on select electronics.

The administration invoked the International Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act to justify the measures, citing national security and a lack of reciprocity in global trade relationships. The tariffs were framed as a corrective mechanism to address persistent U.S. trade deficits and foreign trade barriers.

Although a 90-day suspension was granted for most countries—excluding China—many of the tariffs remain in effect, including a 10% minimum tariff and 25% sector-specific duties. The administration also eliminated the “de minimis” exemption, which had allowed consumers to import up to $800 worth of goods per day tariff-free. This change is expected to disproportionately affect low-cost imports from platforms like Shein and Temu.

Consumer Impact and Supply Chain Disruptions

Retailers and supply chain experts are warning that the full impact of the tariffs will become visible over the summer. Items most at risk include toys, fast fashion, electronics, and seasonal goods like Fourth of July decorations and back-to-school supplies. Many of these products are manufactured in China and rely on long, complex supply chains.

“First, things like toys will vanish. And then maybe, your favorite apparel items. And then, maybe some of the weird replacement parts that you didn’t know came from China,” said Casey Armstrong, chief marketing officer at ShipBob.

Major retailers such as Walmart, Home Depot, and Target have reportedly warned the administration that continued tariff enforcement could lead to empty shelves and higher prices. Seasonal items, including fireworks and patio furniture, are particularly vulnerable due to their limited production windows and reliance on Chinese manufacturing.

Berkshire Hathaway Outperforms Amid Market Volatility

Despite the broader market turbulence, Berkshire Hathaway has continued to outperform. The company’s stock is up nearly 19% year-to-date, compared to a 5% decline in the S&P 500 over the same period. Buffett’s disciplined investment strategy and timely portfolio adjustments—such as trimming Berkshire’s Apple stake in Q2 2024—have helped the conglomerate weather the storm.

Buffett’s long-term approach remains a guiding principle for investors navigating the current uncertainty. “There has been no better investor in history than Warren Buffett,” said Adam Patti, CEO of VistaShares. “He has a remarkable knack for understanding the market, and his process of seeking value and having patience has clearly worked for him over the long haul.”

References

• Buffett criticizes Trump's tariffs rollout, says US shouldn’t use 'trade as a weapon'
• Who is Greg Abel? Meet the Oracle of Omaha's planned successor at Berkshire Hathaway
• The stock market comes all the way back — and then some: Chart of the Week
• Wall Street extends its gains to a 9th straight day, reclaiming losses since tariff escalation
• United States Tariffs Guide for May, 2025 - Attorney Aaron Hall
• Warren Buffett's Stance on Import Tariffs Raises Flags. But Don't Ignore His Words on Investing During Times of Market Turmoil.
• Donald Trump's Tariffs Are Officially Going Into Effect, So Here Are The 8 Everyday Items Most Likely To Be Hit Hardest