Berkshire Hathaway Cites Trump Tariffs for Profit Plunge

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Warren Buffett’s Berkshire Hathaway has reported a decline in revenue in its consumer goods segment, citing the impact of newly imposed US tariffs under President Donald Trump’s trade policy. The firm, which owns brands such as Fruit of the Loom and Brooks Sports, said revenue for the division dropped 5.1% year-over-year in the second quarter due to delayed orders and shipping disruptions linked to the tariffs.

During Berkshire’s annual meeting in May, Buffett spoke out against protectionist measures, warning that tariffs should not be used as a “weapon.” He emphasized that balanced global trade is beneficial for all parties involved.

Meanwhile, President Trump has signed a series of executive orders to implement a wide-ranging set of new tariffs on goods from dozens of countries. The move is part of a broader strategy to reshape the US trade landscape.

Canada is among the most affected nations, with tariffs on its goods rising to 35%. These took effect on Friday. A baseline tariff of 10% will now apply to all other trading partners, with most of these changes coming into effect on August 7.

The White House also confirmed a trade deal with South Korea that includes a 15% tariff on Korean imports while exempting US exports from reciprocal duties. Mexico, the United States’ top trading partner, received a temporary 90-day reprieve from further tariff hikes to allow additional negotiation time.

In other measures, Trump has ordered the end of the de minimis exemption for imports under $800, which will subject low-value goods to tariffs starting August 29. Semi-finished copper products are now subject to a 50% tariff, though copper scrap and input materials remain exempt, leading to falling copper futures throughout the week.

Brazil also faces 50% tariffs on a wide range of exports to the US, although exceptions have been made for key imports such as orange juice and aircraft parts.

A preliminary agreement was also reached with the European Union, setting a 15% tariff on select EU goods. Further negotiations are expected to finalize the arrangement.

Global markets reacted negatively on Friday, with stock indices falling amid investor concerns over escalating trade tensions.

These developments reflect the Trump administration’s push to implement “reciprocal” trade terms, even as critics, including prominent US business leaders, warn of broader economic consequences.