"$13 a barrel cheaper" - Shark Tank investor Kevin O'Leary weighs in on Canadian oil imports to the US

Entrepreneur and Shark Tank investor Kevin O'Leary recently discussed Canadian oil imports to the U.S. in an Instagram video on February 20, 2025, featuring a snippet from his Fox Business interview. He highlighted that the Canadian oil imports form a crucial part of the U.S. energy supply, saying:

"The Canadian oil is $13 a barrel cheaper than any other and it's 70% of the imports."

O'Leary addressed ongoing tariff negotiations, noting that the initial 25% tariff had been reduced to 10% following efforts by Alberta Premier Danielle Smith, who met with former U.S. President Donald Trump at Mar-a-Lago.

He suggested that further reductions might be considered for economic and logistical reasons, emphasizing that ongoing negotiations and upcoming political developments could lead to additional changes in trade policy.

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Impact of tariffs on Canadian oil and US trade relations according to Shark Tank Kevin O'Leary

Tariff reductions and Canada's role in US oil supply

O'Leary outlined the sequence of tariff reductions, emphasizing that Canada's trade situation differs from that of Mexico and Europe. He explained that the initial tariff on Canadian oil was set at 25% but was later reduced, attributing this change to efforts made by Alberta's leadership.

The Shark Tank investor said:

"The oil deal is—remember the first idea was twenty-five percent, and then through a lot of work, I think that Danielle Smith did herself... got her a ten percent tariff."

O'Leary also highlighted the significance of Canadian oil in the U.S. market, explaining that many American refineries were specifically designed to process this type of crude. He noted:

"All the refineries in the U.S. that were designed to take that oil were built specifically for that grade of oil—there's no alternative to buy."

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Potential policy adjustments and economic considerations

Regarding further tariff modifications, O'Leary suggested that economic pragmatism could lead to a policy shift. He said,

"Maybe they pass on that because it's pragmatic."

His comments reflect the ongoing nature of negotiations and the factors that may drive decision-making, including cost-effectiveness and energy security. O'Leary's remarks also addressed the broader context of trade policies and their implications for the U.S. and Canada.

The Shark Tank investor explained that while the tariff adjustments are still in the early stages, upcoming political changes could influence the decision-making process.

O'Leary emphasized that the negotiations are still in their initial stages, highlighting ongoing discussions and the possibility of leadership changes that could influence the outcome.

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Political landscape and future negotiations

O'Leary also discussed Canada's political dynamics and their potential impact on trade discussions. He pointed to the upcoming Canadian federal election and suggested that a leadership transition could influence future negotiations.

"One of the big problems is we don't have any leadership in Canada. The election is coming in six weeks," he remarked.

He also addressed the strained relationship between Trump and Canadian political figures, particularly Deputy Prime Minister Chrystia Freeland and Prime Minister Justin Trudeau.

"Freeland, who Trump disdains... there's no—you know—nobody's hiding the fact he doesn't like Trudeau, doesn’t like Freeland," O'Leary noted.

The Shark Tank investor indicated that the current political environment could affect the direction of negotiations.

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Shark Tank airs on Fridays at pm ET on ABC and is available for streaming on Hulu.