"Different kettle of fish" - Shark Tank's Kevin O'Leary claims that the China tariff deal will take time

Kevin O'Leary, the Shark Tank investor, talked in a recent clip on his Instagram about all the challenges that small business owners are facing right now with endless global trade disputes.

Kevin, talking to CNN, discussed potential ways the Trump Administration could support small businesses and put their minds at ease. He also talked about the complexity of the trade relations between the United States and China and why it is much different than those with other countries.

The conversation started about the vulnerable position that small businesses have found themselves in right now. It is because they don't have the "cushions" that the big business owners do, while there is prolonged economic uncertainty.

The CNN anchor pointed out that these firms are more "well-positioned to survive a downturn," which calls for urgency from the US administration to take action in their favor.

Acknowledging this stance, the Shark Tank investor agreed with the host, however, he cautioned against assuming that a trade deal with China would be as straightforward as with other countries. He said,

"China is a different kettle of fish. They are not a tariff problem. They steal IP, they don't give us access to their markets, they don't trade by the World Trade Organisation."

Shark Tank investor Kevin O'Leary differentiates the China deal from the deal with other countries

Shark Tank investor Kevin O'Leary highlighted that a trade deal with China goes deeper and involves concerns about IP thefts and market barriers, and noncompliance with international trade norms.

The CNN host then pointed out that the tariffs are a Chinese problem from the standpoint of small businesses whose supplies will be directly affected. Because of this, the cost of importing goods has increased, resulting in a tariff war.

As for the Shark Tank investor, he highlighted how this imbalance is in favor of China because of how much they sell to the US. However, he also underscored the leverage that the US holds as a large consumer market. He explained,

"China sells 5 times more stuff to us than they buy. That's the ratio. And yes, my companies have a lot of product on the water, and they are waiting to find out what happens, China opened up the kimono today, if you wanna use that analogy, because look, they know they have to start talking because they have big problems with all those workers making stuff."

He added,

"They can't sell it anywhere else. The US represents 39% of all consumption goods. So they have to get a deal done... China is being called to the table for the first time in 22 years, to answer for its 'crimes' if you wanna call it that."

Trending

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

×

Was this article helpful?

Thank You for feedback