How Warren Buffett’s Berkshire Hathaway Is Navigating Tariffs & Trade Wars

When Warren Buffett talks, the business world listens and Berkshire Hathaway’s latest earnings reveal more than just numbers. They tell a story of how trade wars play out in real life, far away from political soundbites. The lesson? Tariffs are messy, unpredictable, and capable of reshaping entire supply chains overnight.

The Damage Report: Tariffs Hit Berkshire’s Consumer Brands

In Q2, Berkshire’s consumer goods division saw revenue drop 5.1% to $189 million. Well-known brands like Fruit of the Loom, Jazwares, and Brooks Sports all faced headwinds from reduced orders, restructuring costs, and the ripple effects of President Trump’s expanded tariff policy.

While tariffs are often pitched as a way to protect domestic industries, the reality is more complex. In Berkshire’s case, higher import costs and shifting supply chain rules forced its consumer brands to adapt quickly or risk losing market share.

Tariffs intended to encourage domestic production can also raise the cost of imported materials and components that U.S. companies rely on. For brands like Fruit of the Loom, this means sourcing challenges, longer lead times, and difficult pricing decisions. Instead of a straightforward “win” for American business, the result is often a scramble to keep operations running while protecting profit margins.

The Hidden Compliance Crisis Nobody’s Talking About

The revenue numbers tell part of the story, but the real disruption is happening behind the scenes — in the compliance departments. Trade policy changes force companies to:

• Rewrite import classifications almost overnight
  
  

• Revise customs documentation under urgent deadlines
  
  

• Renegotiate supplier contracts to account for new tariffs
  
  

• Manage sudden shipment delays as goods sit in customs waiting for clearance
  
  

In this environment, one missed detail can mean seized shipments, costly penalties, or missed retail deadlines. The winners are companies that invested in agile compliance systems long before they were needed. The losers are scrambling to react in real-time while inventory and revenue take a hit.

Plot Twist: Brooks Sports Outruns the Tariff Trouble

Not every Berkshire brand struggled. Brooks Sports, known for its performance running shoes, posted an impressive 18.4% revenue increase despite the turbulence.

The secret? Focus. While competitors pivoted, panicked, or diluted their messaging, Brooks doubled down on its core identity: premium performance footwear. This clarity in brand positioning, combined with consistent product availability, helped them not only maintain market share but grow it.

Lesson for other companies: In times of market disruption, clarity and consistency are competitive advantages. Customers stick with brands they understand and trust.

Your Tariff Survival Checklist

If you’re running a business affected by tariffs, consider these strategies:

1. Plan for chaos – Treat tariffs like any other business risk and include them in your scenario planning.
   
   

2. Prioritize speed – The companies that adapt the fastest consistently outperform slow movers.
   
   

3. Build customer trust early – Strengthen loyalty before disruption hits, so customers are less likely to switch when prices or availability change.
   
   

4. Invest in compliance agility – Update systems and workflows so classification changes, documentation updates, and supplier renegotiations can happen without disrupting your operations.
   
   
   

The Bigger Picture: Tariffs as a Strategic Variable

Buffett’s warning from earlier this year still rings true; tariffs used as economic weapons create unpredictable winners and losers. The companies thriving in this environment share one key trait: they treat trade policy not as background noise, but as a strategic factor in business planning.

In a world where geopolitics directly impacts quarterly earnings, adaptability is no longer optional. Businesses that integrate tariff planning into their supply chain, pricing, and compliance strategies will have a much better chance of weathering the next trade war.

Bottom line: Tariffs are here to stay as a tool of economic policy. Companies that accept this reality and plan accordingly won’t just survive — they’ll position themselves to win when the rules inevitably change again.