By Carolina Mandl NEW YORK (Reuters) -Warren Buffett’s Berkshire Hathaway said on Saturday that its consumer goods businesses took a hit from U.S. President Donald Trump’s trade policy, which raised tariffs on imported goods. The conglomerate’s consumer products group, which includes companies such as Fruit of the Loom, Jazwares and Brooks Sports, posted a 5.1% […]
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Trump tariffs hit Buffett’s Berkshire consumer goods businesses
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By Carolina Mandl
NEW YORK (Reuters) -Warren Buffett’s Berkshire Hathaway said on Saturday that its consumer goods businesses took a hit from U.S. President Donald Trump’s trade policy, which raised tariffs on imported goods.
The conglomerate’s consumer products group, which includes companies such as Fruit of the Loom, Jazwares and Brooks Sports, posted a 5.1% revenue decline in the second quarter from a year earlier to $189 million, due to lower volumes, tariffs and business restructurings.
Berkshire said tariffs produced delays in orders and shipments.
Still, the company said shoemaker Brooks’ revenue increased 18.4% in the second quarter, as unit sales increased.
Buffett’s conglomerate is closely watched by investors as its vast array of businesses in different sectors is seen as a microcosm of the broader U.S. economy.
In May, during Berkshire’s annual meeting, Buffett strongly defended free trade, saying tariffs should not be a “weapon”, adding: “Balanced trade is good for the world.”
On Saturday, the conglomerate said its second-quarter operating income fell 4% to $11.16 billion, or about $7,760 per Class A share, from $11.6 billion a year earlier.
(Reporting by Carolina Mandl, in New York; Editing by Alden Bentley and Joe Bavier)