“He’s taking a calculated risk” — Shark Tank investor Kevin O’Leary backs Trump’s tariffs in a brutal market

Kevin O'Leary, a Shark Tank investor, has never held back from voicing strong opinions, and his most recent remarks on Donald Trump's proposed tariffs are no different. O'Leary recently expressed his support for the president's strategy for combating unjust international trade practices, especially those involving China, in an interview. In order to regain control over American industry and economic independence in a world that is becoming more and more competitive, he said,

"Trump has about 18 months to get all of this worked out before he faces midterm elections. And his party, which now enjoys a majority, could lose that if he doesn't get all this worked out. He's taking a calculated risk."

O'Leary underlined that tariffs have a purpose even though they are controversial. He maintained that the American economy is dealing with a "brutal market" in which foreign competitors outprice domestic firms, supply chains are manipulated, and innovations are swiftly replicated. Trump's firm posture may be required in such a situation to retaliate and safeguard long-term American interests.

O'Leary thinks the possible benefits outweigh the risks of tariffs, despite some detractors claiming they could worsen trade relations and increase consumer costs. He saw Trump's move as a daring, business-minded bet, similar to what an experienced investor might do to regain leverage.

Shark Tank investor Kevin O'Leary discusses if Trump's political reputation is at risk

When asked if Donald Trump's tariff plan could harm his political standing, Kevin O'Leary, known for his appearance on Shark Tank, didn't mince words. O'Leary asserts that Trump's reputation is being reinforced rather than in danger. According to the investor, Trump is presenting himself as a fearless leader prepared to face criticism in order to achieve long-term success. Even if such leadership can be polarizing, it appeals to voters seeking unreserved action and financial security.

Kevin O'Leary highlights that the current trade spat between the United States and China is unsustainable, particularly for China. Given the potential for economic harm to both countries, he says a pivotal summit between leaders is unavoidable.

"China can't build its entire economy on American IP. They just can't. And investors will stop investing. So you may say, oh, my goodness, there's so much volatility. But if this doesn't get worked out, the outcome is the same. It just takes longer."

Shark Tank panelist emphasizes that investor confidence would decline if a resolution is not reached quickly and that China cannot continue to rely only on American intellectual property.

"But if this doesn't get worked out, the outcome is the same. It just takes longer. And so I would rather say, all right, I'm willing to take some pain. And I have, my goodness, our portfolio companies' valuations vary as much as 20% a week. That's very unstable."

He further highlights that postponing talks with China will only prolong economic suffering and not alter the outcome. Shark Tank OG acknowledges that he is already feeling the effects, as his portfolio businesses' valuations have seen sharp fluctuations of up to 20%. This volatility emphasizes how urgently meaningful negotiations are needed. He dismisses China's detours as a "joke" and emphasizes that both countries need to meet quickly or risk economic repercussions.

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