"India is a great example": Shark Tank mentor Kevin O'Leary explains how tariffs can be used as a "weapon" 

Shark Tank mentor Kevin O’Leary shared his thoughts on the global impact of tariffs in an Instagram reel posted on April 29, 2025. In the video, O’Leary used India as a key example to explain how tariffs are being applied as strategic tools rather than long-term economic solutions. While discussing the high tariff rates the country had placed on automotive imports, he said:

"Tariffs are short-term weapons to rebalance trade. India is a great example. "They’ve had 110% tariffs on automotive going into India, and now the Indians have come to the White House and said, 'Okay, let’s redo this. We’ll work out a deal.'"

Kevin explained how such tariffs are often used to push countries into negotiating better trade terms. While praising how short-term tariffs can drive negotiations, O’Leary cautioned against using them as permanent fixes.

The clip focused on how U.S. strategy around tariffs is bringing countries to the table and potentially reshaping trade frameworks, especially if a deal with India sets the tone for future agreements.

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Tariffs as short-term leverage: Shark Tank mentor Kevin O’Leary’s example of India

In the Instagram reel, Kevin O’Leary explained how the U.S. has used tariffs as a short-term tactic to reset trade relationships. He pointed to India’s 110% tariff on automotive imports as a turning point. Shark Tank star Kevin added that if a deal results in zero tariffs or a balanced 10% each way, “that’s a good thing.”

The caption in the reel further clarified his view:

"You can't replace income tax with tariffs unless you're charging more than 20%. That's too much. It's inflationary. Tariffs are short-term weapons to rebalance trade," he shared.

O’Leary explained that tariffs alone won’t fix trade deficits. Instead, he believed their value lies in their pressure effect. He noted that the U.S. strategy was drawing international attention, with countries actively engaging at the White House.

O'Leary added that if a deal with India were to be finalised, it could serve as a model for future agreements with other nations, potentially boosting the market — something he believes everyone is hoping for.

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Broader outlook: Three steps to stabilise trade and markets

This is not the first time Shark Tank mentor Kevin O’Leary has pointed to India in trade discussions. In a Fox Business appearance on April 22, he outlined a three-step roadmap for calming markets.

“If you want to calm the markets, here’s the roadmap... Step 1: Land a deal with India. Massive opportunity in pharma and generics. It would reset tariffs and serve as the blueprint for future trade with the EU and others,” he said.

According to him, India holds major opportunities, especially in pharmaceuticals and generics. He continued by suggesting the next two steps: open strategic talks with China and avoid interfering with the Federal Reserve’s autonomy.

“Don’t touch the Fed — let them do their job,” he advised.

Shark Tank investor O’Leary also appeared on CNN in April, where he dismissed ongoing fears of a recession, saying that forecasters of recessions have been wrong for "four years straight.” He explained that many current trade rules were outdated and that revising them could lead to more balanced global trade.

According to him, negotiating deals with countries like Canada, Britain, and Switzerland is essential for market confidence. By repeatedly talking about India’s trade engagement, O’Leary continues to present it as a key player in shaping a more balanced global trade system.

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