Investor and TV personality Kevin O’Leary has voiced his disapproval of former President Donald Trump‘s tariff strategy against China, citing potential economic and political repercussions.
What Happened: O’Leary has openly criticized former President Trump’s approach to the ongoing tariff war with China. In a recent post on X, O’Leary expressed concerns over the economic and political implications of the tariffs.
According to O’Leary, Trump is taking a significant risk with the tariff strategy, which could have severe consequences for both the markets and his political standing if it fails. With 18 months until the midterms, O’Leary suggests that the stakes are high for Trump.
O’Leary highlighted the impact of the 125% tariffs on China’s economy, noting that the country’s factories are struggling with nowhere to ship their goods. He emphasized the potential unrest among unemployed workers in China, despite President Xi Jinping not facing electoral pressure.
He further pointed out that the U.S. serves as the “buyer of last resort,” and if American demand halts, it could lead to broader economic consequences.
O’Leary urged for a resolution, stating that the current situation is unsustainable and advocating for leadership and negotiation to end the economic standoff.
Why It Matters: O’Leary has been vocal about his views on tariffs and market volatility. Recently, he called for a 400% tariff on China, arguing that the existing tariffs are insufficient.
He criticized China’s trade practices, claiming they don’t adhere to international rules and often engage in technology theft.
O’Leary’s concerns about volatility are well-documented. He has stated, “I hate volatility and I don’t like it when the market corrects,” but acknowledges that market corrections are a regular occurrence, typically ranging from 15% to 20% over time.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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