Kevin O'Leary on Sky-High Prices and Tariffs

Kevin O'Leary, affectionately known as Mr. Wonderful, is candid about the current economic situation. In a recent post on X, he stated, "Prices aren't going down! Eggs, energy, housing—all still sky-high." He warns that the introduction of tariffs on goods from Mexico and Canada could lead to even higher prices.

Housing Costs Could Get Worse

O'Leary emphasizes that with potential tariffs on imports from Mexico and Canada, prices for critical materials like lumber could rise. This would further inflate housing costs, making an already tough market even more challenging. As he pointed out in his social media post, “Lumber prices are up, housing will be even more expensive.” With the political situation in Canada uncertain, and the U.S. government taking a tough stance, the situation looks grim for consumers.

Canada's Uncertain Position

O'Leary notes that Canada's position is complicated by its internal leadership struggles. With a federal government in turmoil, provincial leaders from regions like Ontario, Alberta, and Saskatchewan are trying to manage trade talks with the United States, particularly for energy trade.

A Strategy to Bring Investment Back

Despite these immediate price concerns, O'Leary believes there is a larger strategy at play. He suggests that the current negotiations could be part of a plan to attract more investment back to the U.S. While these times are undoubtedly volatile, he views trade discussions as steps toward balancing trade disparities between countries.

Trade War Heating Up

The situation continues to escalate as Canadian Prime Minister Justin Trudeau announced retaliatory tariffs against U.S. products. In response to President Donald Trump's tariffs on Canadian goods, Trudeau has imposed a 25% tariff on CA$30 billion worth of U.S. imports, effective immediately. Additional tariffs affecting CA$125 billion worth of products are expected to follow.

President Trump has warned that any retaliatory action from Canada would prompt equivalent measures from the U.S. He stated on social media, “When he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!”

The future remains uncertain, with O'Leary cautioning that such tariffs will not lead to immediate changes in the market. The ongoing negotiations mean that consumers are unlikely to see price drops anytime soon.

prices, tariffs, housing