Warren Buffett’s Consumer Goods Businesses Affected by Trump’s Tariffs

Web Editor

August 2, 2025

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Overview of Berkshire Hathaway’s Consumer Goods Division

Berkshire Hathaway, owned by renowned investor Warren Buffett, reported that its consumer goods businesses have been negatively impacted by President Donald Trump’s increased import tariffs. The company’s diverse range of businesses serves as a microcosm of the U.S. economy, making it a closely watched entity by investors.

Consumer Goods Division Performance

Berkshire Hathaway’s consumer goods division, which includes brands like Fruit of the Loom, Jazwares, and Brooks Sports, experienced a 5.1% decrease in revenue during Q2 compared to the previous year, totaling $189 million. This decline was attributed to lower volumes, tariffs, and business restructuring.

  • Revenue drop: 5.1%
  • Q2 revenue: $189 million
  • Previous year Q2 revenue: Not specified

Impact of Tariffs on Consumer Goods Businesses

The tariffs led to delays in orders and shipments, according to Berkshire Hathaway. Despite this, the footwear manufacturer Brooks saw an 18.4% increase in revenue due to higher sales volume of units.

Warren Buffett’s Stance on Trade

Warren Buffett, through Berkshire Hathaway, has been a strong advocate for free trade. At the company’s annual meeting in May, Buffett emphasized that tariffs should not be used as “weapons” and stated, “Balanced trade is good for the world.”

Overall Financial Performance

Berkshire Hathaway reported a 4% decrease in operating revenues for Q2, totaling approximately $7,760 per Class A share, down from $11,600 million in the previous year.

  • Q2 operating revenues: $11,160 million
  • Previous year Q2 operating revenues: $11,600 million
  • Decline in operating revenues: 4%

Key Questions and Answers

  1. What is Berkshire Hathaway? Berkshire Hathaway is a conglomerate owned by investor Warren Buffett, known for its diverse range of businesses that reflect the U.S. economy.
  2. How have tariffs affected Berkshire Hathaway’s consumer goods businesses? Tariffs have led to decreased revenues, delays in orders and shipments, though some businesses like Brooks footwear have seen increased sales volume.
  3. What is Warren Buffett’s stance on trade? Buffett supports free trade and believes that tariffs should not be used as weapons, stating that balanced trade is beneficial for the world.
  4. How has Berkshire Hathaway’s overall financial performance been affected by tariffs? The company has experienced a 4% decrease in operating revenues for Q2, totaling approximately $7,760 per Class A share.