"SIZE MATTERS" Shark Tank investor Kevin O'Leary reveals U.S has upper hand over China

Shark Tank star and Canadian businessman Kevin O'Leary made headlines Tuesday with a fiery Instagram post and a bold appearance on CNN, where he pushed for sharply higher tariffs against China.

The outspoken investor called for a 400% tariff on Chinese goods—far beyond the 104% rate recently proposed by President Donald Trump, arguing that the U.S. needs to take a tougher stance in the ongoing trade conflict.

Tensions between the two global superpowers have been rising, especially as China hits back with its own 84% tariffs on American products. But O'Leary made it clear he believes the U.S. holds the advantage.

“In a trade war, SIZE MATTERS — and the U.S. economy has the upper hand,” he wrote on Instagram.

He also dismissed concerns about China potentially offloading U.S. Treasuries, adding:

“Go ahead... the pressure doesn’t land on the U.S., it lands straight on Xi Jinping’s desk.”

Known for his no-nonsense approach on Shark Tank, Kevin O'Leary is now channeling that same energy into international trade, bringing his trademark bluntness to a debate that shows no signs of cooling off.

Kevin O'Leary’s economic warfare strategy calls for 400% tariffs

Kevin O'Leary pulled no punches during the CNN panel, explicitly stating:

"104% tariffs in China are not enough. I'm advocating 400%."

His reasoning stems from frustration over what he describes as alleged decades of intellectual property theft and rule-breaking by the Chinese government.

"I do business with China. They don't play by the rules," O'Leary explained on social media.

Elaborating:

"They've been in the WTO for decades. They have never abided by any of the rules they agreed to when they came in for decades. They cheat, they steal, they steal IP."

The businessman accused China of taking American technology and intellectual property, manufacturing products with stolen designs, and selling them back to U.S. markets. His proposed solution? Economic pressure so intense that Chinese President Xi Jinping would have no choice but to negotiate.

"This isn't a war of bombs. It's a war of economics," O'Leary stated emphatically.

Declaring:

"And in that battle? Money talks. Everything else is just noise."

Central to Kevin O'Leary's argument is America's economic dominance. He emphasized that the United States accounts for approximately 25% of global GDP, giving it substantial leverage in trade disputes.

"If we hit back with 25%... 400% tariffs... AND shut down the markets? You'll see how quickly the conversation moves to Geneva. That's how leverage works," the investor explained, suggesting that only extreme measures would bring China to meaningful negotiations.

Kevin O'Leary is urging the U.S. to act swiftly and decisively in its economic standoff with China, warning that the current American advantage might not last much longer.

He stressed that the U.S. needs to apply immediate pressure, especially on issues like intellectual property theft, which he claims has affected millions of Americans.

While O'Leary has been vocal about raising tariffs, he emphasized that tariffs are just a means to an end. His real goal, he said during a CNN appearance, is to force Chinese President Xi Jinping to the negotiating table in Washington.

For O'Leary, the strategy is less about economics and more about geopolitical leverage—using economic pressure to push China into making fairer trade deals.

He also credited the Trump administration for being the first to seriously confront China’s trade practices. According to O'Leary, previous U.S. administrations and even European governments failed to take meaningful action, allowing unfair trade dynamics to persist.

Drawing from his own experience doing business in China, O'Leary said he’s grown frustrated with what he sees as a long history of one-sided dealings, and now he wants to see real change.

Escalating tensions explained

The timing of Kevin O'Leary's remarks is one of the difficulties in the relationship between the United States and China. The trade dispute sharply escalated when China's finance ministry declared it would levy 84% tariffs on all American exports beginning Thursday.

Further complicating commercial relations between the two countries, Chinese officials also placed six American corporations on a list of "unreliable entities" and added 12 U.S. entities to its export control list.

These actions come after Trump warned that China must remove its retaliatory tariffs or risk an extra 50% tariff from the US, underscoring the increasingly combative stance taken by both countries.

Kevin O'Leary contributes a unique viewpoint to the trade discussion as a television celebrity and a successful businessman with global operations. His experience on Shark Tank has cultivated his image as a straight-talking investor focused on bottom-line results.

Foreign policy and economic experts are split on whether Kevin O'Leary’s bold strategy will actually lead to a breakthrough. Some see it as tough talk with potential. Others worry it could backfire.

Either way, his comments have definitely stirred up the conversation. With tensions already high between the U.S. and China, his timing couldn’t be more pointed.

Now, the business world is watching closely. Tariffs are climbing. The rhetoric is heating up. And everyone’s waiting to see: does size really matter in this global economic showdown?

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You can watch Shark Tank live on ABC Fridays at 8 p.m. ET/PT, or stream episodes the next day on Hulu.