Warren Buffett shares stark warning about the future of Trump's tariffs as he steps down from Berkshire Hathaway

Warren Buffett has issued a dire warning about the future under Donald Trump as he steps down from Berkshire Hathaway.

The legendary 94-year-old investor, who is the sixth-richest person in the world, has announced he will be stepping down from his position as Chief Executive at Berkshire Hathaway after steering the ship for more than 55 years.

Buffett made the shock announcement at the company's annual shareholder meeting from his home city of Omaha, Nebraska, on Saturday (May 3), just hours after he issued a grave warning about President Trump's tariffs.

Though he didn't explicitly name Trump, the philanthropist said the president's tariffs plan could pose some serious consequences for the US, its trading partners and global business, dubbing the initiative a 'big mistake'.

Speaking at the meeting, Buffett said trade 'should not be a weapon' before adding: "There's no question that trade can be an act of war."

Warren Buffett stunned the audience on Saturday (Eric Francis/Getty Images)

"There’s nothing like it. And it's a big mistake in my view when you have 7.5 billion people who don't like you very well, and you have 300 million who are crowing about how they have done," he said.

The father-of-three suggested that while he agreed trade ought to be negotiated between countries, it should be used for the good of the US, not to make other countries 'envious'.

"We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best," Buffett added. "We want a prosperous world but eight countries with nuclear weapons, including a few that I would call quite unstable.

"I do not think it’s a great idea where a few countries say ‘hahaha we won,’ and other countries are envious."

His comments came before the so-called 'Oracle of Omaha' stunned the audience with his plans to step down.

But no one was more stunned than chairperson Greg Abel, who apparently none-the-wiser to Buffett's retirement, let alone his recommendation that Abel become the new CEO by the end of the year.

While sitting next to him on the stage, Buffett announced: "I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end."

It was later revealed only his two children, Howard and Susie Buffett, who also sit on the board, had been looped-in on the plan.

Buffett has continuously swotted away any rumors of his retirement, saying up until recently that he had no plans in motion to give up Berkshire Hathaway anytime soon - and doubled-down that it's still not for sale.

Greg Abel is tipped for the role (David Paul Morris/Bloomberg via Getty Images)

"I have no intention - zero - of selling one share of Berkshire Hathaway," he said. "I will give it away eventually.

"The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine."

Buffett also said he would 'hang around' to help Abel transition into the position, though he has long been designated as the potential successor and already manages much of the company's non-insurance businesses.

According to Forbes, Buffett has a ginormous fortune estimated at around $168 billion which he has pledged he will give away to charity rather than pass it down to his children, Susan, Howard and Peter.

He said in a letter that he decided he didn't want to create a 'dynasty' or 'pursue any plan that extended beyond the children'.

"I know the three well and trust them completely. Future generations are another matter," he said at the time. "Who can foresee the priorities, intelligence and fidelity of successive generations to deal with the distribution of extraordinary wealth amid what may be a far different philanthropic landscape?"