Recommended Free Tools
Warren Buffett called tariffs “an act of war, to some degree” in a March 2025 interview excerpt. Berkshire Hathaway’s reported $328.0 billion in cash, cash equivalents and U.S. Treasury bills at March 31, 2025, shows substantial liquidity—but does not establish that tariffs caused the balance or that Buffett was signaling a market downturn.
What Buffett said about tariffs
In a March 2025 CBS interview clip reproduced in a CNN transcript, Buffett described tariffs as a cost borne over time by people buying goods: “Over time, they’re a tax on — on goods. I mean, you know, the tooth fairy doesn’t pay them.” He added: “They’re an act of war, to some degree.” Read the CNN transcript.
His point was about economic consequences as well as international tension: tariffs can raise the cost of goods, and the cost does not simply disappear. The “act of war” phrase was qualified—“to some degree”—and should not be read as a literal declaration that tariffs are military action.
How his May 2025 trade remarks differed
At Berkshire Hathaway’s annual meeting on May 3, 2025, Buffett made a related but broader point about trade. The Associated Press reported that he said “trade should not be a weapon” and “there’s no question that trade can be an act of war.” Read the Associated Press report.
#1 Best Overall
The March remarks specifically addressed tariffs and their costs. The May remarks concerned using trade as a weapon more generally. Both express Buffett’s view that trade conflict can be damaging; neither is a disclosure about a Berkshire investment decision.
What Berkshire’s cash disclosure actually shows
Berkshire’s Form 10-Q reported that its insurance and other businesses held a combined $328.0 billion in cash, cash equivalents and U.S. Treasury bills on March 31, 2025, net of payables for unsettled purchases. This is a balance-sheet snapshot on that date, not a real-time figure or an explanation of why Berkshire held the funds. See Berkshire Hathaway’s first-quarter 2025 Form 10-Q.
Rank #2
- Brand: HarperCollins
- The Complete Financial History of Berkshire Hathaway: A Chronological Analysis of Warren Buffett and Charlie Munger's Conglomerate Masterpiece
The same filing reported no share repurchases in the first quarter of 2025. Berkshire said its repurchase policy depends on Buffett’s conservative assessment of intrinsic value and that maintaining financial strength and redundant liquidity is a priority. The policy also would not permit repurchases if they reduced consolidated cash, cash equivalents and U.S. Treasury bills below $30 billion. That $30 billion is a policy threshold, not a forecast or a recommended cash allocation for individual investors.
Does this mean “smart money” is reacting to tariffs?
No such conclusion follows from these disclosures alone. Berkshire’s filing establishes its reported liquidity at quarter-end and says there were no repurchases in that quarter. It does not say tariffs caused the cash balance, identify a tariff-related trade, or establish that other institutional investors are following Buffett.
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallOutdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchCash can reflect several elements of a company’s capital-allocation framework, including liquidity needs and the price available for potential investments. The filing describes Berkshire’s approach but does not attribute the reported balance to any single motive. It also is not a market forecast. Treat “smart money is reacting” as an interpretation, not a fact demonstrated by the cited statements and filing.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Earlier context on Buffett’s trade views
Buffett has discussed trade policy in earlier shareholder letters. In a 2003 letter, he addressed tariffs and quotas in connection with trade imbalances and the risk of a tariff war. The letter is available through Berkshire Hathaway’s shareholder-letter archive; the 2004 letter, “America’s Growing,” is also available on Berkshire’s site. This history offers context for his 2025 comments, but it does not turn the 2025 cash disclosure into evidence of a tariff-driven investment move.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
