"Two forces at play" - Shark Tank's Kevin O'Leary warns Americans about the ongoing inflation

Shark Tank investor Kevin O'Leary recently shared on his social media account about the ongoing economic pressures. He highlighted the issues with the affordability of items as well as tariff uncertainties along with the broader economic outlook.

As he points out, the American economy is facing a challenging time right now, with inflation being a major factor that is causing most of the distress across a lot of sectors.

The Shark Tank investor said that essential goods such as eggs, as well as housing and energy, have their prices going up without any sign of them stabilizing shortly. These increased costs directly affect American households and make affordability a main issue for policymakers.

Kevin says that an air of uncertainty will prevail in the country until further economic indicators such as the Jobs Act and the job numbers report are released. Explaining it all, he says,

"There are two forces at play here. We're talking about affordability czar because the price of eggs and housing and energy are not showing any signs of declining at this point and we are even concerned until we see the jobs act later this week or the jobs numbers."

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Shark Tank investor Kevin O'Leary discusses the impact of tariffs on trade and inflation

Kevin O'Leary, the Shark Tank investor, also talked about the potential imposition of tariffs, especially the ones that are put on trade with Mexico and Canada. He explains that both of these countries are major trading partners with the United States, and thus, having any significant tariff changes would mean long-term inflationary effects.

He said that one of the sectors that will be affected the most by this is 'housing.' It is because the tariffs would hit lumber, which plays a key role in housing costs.

If tariffs are implemented, they would not have immediate drastic effects, but over time, this would increase costs for the American consumers. This combination of supply chain challenges along with a shift in the trade policies could further complicate the economic scene in the country.

The Shark Tank investor then talked about how there is political uncertainty in Canada due to the absence of a Prime Minister. However, provinces such as Ontario, Alberta, and Saskatchewan are actively in negotiations with the American government to secure favorable trade deals.

He says that these provinces play a significant role in trade with the US, especially when it comes to the energy sector. Even though discussions are underway, Kevin notes that the situation is still fluid. He expressed,

"At the same time, it's a negotiation. Canada is in a bit of a deficit position because they don't have a Prime Minister. So all the premiers of every province of the equivalent of states are in Washington right now, trying to work all this stuff out, particularly Ontario and Alberta and Saskatchewan where all of the trade occurs basically, including the energy."

Even though there is economic unrest right now, Kevin points out that these discussions are aimed at restoring investment in the United States. The administration is trying to restore the trade imbalances on a country-by-country basis.

“These are volatile times. But the outcomes are towards getting back more investment into the U.S. and a balance on trade imbalances, country by country by country. Each one is unique,” he concluded.

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Shark Tank Season 16 episodes are released weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.