Canadian MAGA businessman Kevin O’Leary appears willing to admit that President Donald Trump’s trade war with China is essentially a “consumption tax” which Americans will end up paying.
The Shark Tank star appeared on CNN’s NewsNight on Monday to defend the president after the U.S. and China both pulled back on their retaliatory tariff plans, which had sent shockwaves through the global economy.
“China is a special situation. When we get that deal done, it’ll become the hallmark for all the other countries,” O’Leary said. “And I think where we’re going is a 10-in-10 reciprocal on everybody. Call it a VAT tax. That’s really what’s going on here, a consumption tax in America. But you can’t sell that to Congress, so you call it a tariff.”
Trump and China’s explosive tariff war cooled slightly when both countries announced plans to lower their unprecedented import taxes on each other.
The U.S. said it would reduce its previous 145 percent tariffs on China to 30 percent, while Beijing agreed to slash its tariffs on American goods from 125 percent to 10 percent.
The new tariff rates, which followed a devastating period that left the U.S. economy in turmoil, will remain in place for at least 90 days as the two sides continue negotiating a new deal or truce.
Trump has spent weeks defending his tariff strategy, claiming his April 3 “Liberation Day” announcement would provide a major boost the U.S. economy and result in companies manufacturing in this country.
But many Americans who are faced with rising prices as a result of the tariff plans weren’t convinced. In April, a Fox News poll found that 56 percent disapproved of how Trump was handling the economy, with 58 percent specifically rejecting his tariff plans.
Talks between the U.S. and China were held over the weekend in Geneva. Treasury Secretary Scott Bessent said the discussions made clear that neither side “wants a decoupling.”
Markets welcomed the tariff rollback. On Monday, the S&P 500 jumped more than 3 percent, while the Dow Jones Industrial Average climbed 2.8 percent.
Speaking to CNN, O’Leary praised Bessent for his role in the talks, giving him “100 out of 100.”
“But we’re not finished yet,” O’Leary added. “And by the way, if you want the index of the market—we’ve recovered everything since April 3, and then some. So listen, keep going.”
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