'I'm OK With The Volatility' — Kevin O'Leary Defends Trump Tariffs And Urges U.S. To 'Circle The Wagons' Against China

The latest round of the U.S.-China tariffs are "destructive" to American small businesses, investor and "Shark Tank" star Kevin O'Leary said on CNN on April 22.

His remarks come amid escalating trade tensions between the two countries. On April 9, the White House announced a tariff hike on Chinese goods from 84% to 125%. The next day, China's Ministry of Commerce hit back with an 84% tariff on U.S. products.

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He said, "So, I’m very happy that some administration, this one particularly, is taking them on to resolve this problem once and for all. And [Chinese President Xi Jinping] needs the U.S. and the U.S. needs Xi. So, let’s get this thing resolved. I’m OK with the volatility." He also urged policymakers to "circle the wagons" with U.S. allies. 

O'Leary described the current market swings as a necessary step toward addressing what he called decades of imbalanced trade practices. He also proposed a 400% blanket tariff, emphasizing that "only shock therapy forces change."

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Tariffs, Tensions And The Toll

O'Leary's frustration stems from firsthand experience. "I'm an example of someone who's really been screwed by the Chinese in IP. theft," he said, emphasizing a need to focus on policy over personality.

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Household sentiment followed the headlines. The University of Michigan's consumer sentiment index showed its expectations index down 32% since January, while inflation expectations soared to 6.5%—the highest since 1981. 

On April 22, the International Monetary Fund slashed its global trade-growth outlook to 1.7%, blaming what it called “the most intense bilateral tariff standoff of the century.” 

Markets echoed the anxiety. Bloomberg estimated a 45% chance of a U.S. recession within the next 12 months, largely attributed to a “tariff-induced demand shock.” 

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Corporate earnings also hinted at trouble: PepsiCo PEP warned in its Q1 earnings report that rising supply-chain costs could keep core EPS flat for 2025, while Procter & Gamble PG announced a 2% revenue dip tied to tariffs and freight surcharges.

Beijing moved to soften some blowback by exempting certain U.S. medical devices from its 125% tariff.

Cargo statistics tell the same story. Analysts at Apollo Global Management APO warned that container bookings from China to U.S. ports have plunged to pandemic-era lows, potentially triggering “COVID-like shortages" within a few weeks.

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