While most people see tariffs and AI as looming threats to the economy and jobs, Kevin O’Leary isn’t losing sleep. The Shark Tank star believes tariffs won’t crush consumers, and AI may keep businesses afloat.
Ever since Donald Trump ascended the throne of the US presidency, the atmosphere of everything trade and commerce has been shaky to say the least. A large chunk of the population (67% to be precise) has been apprehensive of the current geopolitical climate and the effect it has on their finances.
Growing inflation and trade wars have created an air of uncertainty for the public. To make matters worse, AI is coming for everyone’s jobs (or so the mainstream says).
But Kevin O’Leary disagrees. Mr. Wonderful, for once, has something wonderful to offer.
Kevin O’Leary on Why Tariffs Won’t Break Consumers
According to Kevin, tariffs won’t hit consumers very hard, or at least as hard as they expect them to.
Shoppers in places such as France, Italy, and Canada regularly pay an extra consumption tax of around 13 to 15 percent on most items. The United States doesn’t have this system.
Markets Show Confidence Despite Tariff Drama
The financial markets and hubs haven’t shown much alarm over the new tariff plans so far. This is an indication that the overall effect on the economy may be modest.
Kevin has commented on the situation: “One of the reasons the market is at all-time highs, even though there’s a lot of controversy about tariffs, is there’s a lot of optimism about what the next few years are going to look like,” he said. “Trump could never pass a consumption tax in the U.S., but he just called it a tariff, and it did the same thing. The market has taken it for a reciprocal tax, and it’s good with it.”
The extra costs tied to tariffs don’t always land directly on shoppers. Why? Because companies frequently find ways to absorb some of the hits themselves.
Why Kevin O’Leary Isn’t Worried About AI Replacing Jobs
The advent of AI is the cause of distress for many. Many observers see the remnants of the dot-com boom in today’s AI excitement. Back then inflated hopes ended in a sharp market crash.
But once again, Kevin O’Leary doesn’t share that concern! Call it ahead of the curve or uprooted from reality. He elucidates that AI is delivering measurable productivity gains. Ergo, making its economic impact clear and concrete rather than speculative.
AI in Action: O’Leary’s Drone Bet
O’Leary pointed to one of his own investments to show how AI creates real value.
He backs a drone startup called Fly Guys. The company basically sends drones to inspect rooftops and capture detailed aerial images.
Mr. Wonderful thinks that this kind of automation can save huge sums for retailers with massive properties. These gains in turn could balance out the extra costs from tariffs and support strong stock valuations.
Still, he admitted the real test is yet to show its results. Over the next year or so, company earnings will reveal whether these savings show up on the bottom line or not as something substantial.
Final Takeaways from Mr. Wonderful
Kevin O’Leary leaves little room for doom-and-gloom thinking. The common man may brace for tariffs to squeeze wallets and for AI to wreak havoc on jobs, but Kevin views both forces through the lens of a business owner.
Tariffs are not as catastrophic as they were first perceived to be, and AI is already proving its worth by cutting costs and driving efficiency. His advice for now is to tune out the noise and focus on results.
