"Shark Tank" co-star Kevin O'Leary said Monday on Fox Business that President Donald Trump's looming tariff on steel and aluminum imports have broader implications for US-Canada relations.
During an appearance on "The Evening Edit," O'Leary discussed the impact of tariffs as the start of significant negotiations. He said there is potential for broader economic integration between the U.S. and Canada. Trump plans to impose tariffs of 25% on imports from Mexico and Canada, along with an additional 10% tariff on Canadian oil, natural gas, and electricity. Despite these significant figures, Trump has imposed only a 10% tariff on oil, the cheapest U.S. imports. O'Leary said this is merely the opening move in what could be a transformative economic negotiation.
"So all of this to me, if you separate the signal from the noise, forget the noise. The signal is, let's get an economic union together," O'Leary said. O'Leary said there is a global uproar over the U.S.'s proposed 25% tariffs and the reciprocal tariffs from countries like India, which have set their tariffs on some U.S. products at up to 23%.
"Those are two different baskets. Obviously, the one that people are talking about quite a bit tonight is India. They've got certain product services in different sectors, up to 23%. Now we're going to have reciprocal tariffs in the U.S. against them. [Indian Prime Minister Narendra] Modi will immediately fly to Washington. The negotiations will begin," O'Leary said.
O'Leary, however, said Canada's situation differs from others.
"It's the same everywhere. The Canadian situation is unique. Almost the entire 200 million deficit that the president's talking about comes from one single source. That's energy coming out of Irving Refineries on the east coast down to Boston, and all of that oil, 4.3 million barrels a day coming in at Alberta into the west," O'Leary said. "And so that's the most inexpensive oil [that] the U.S. imports. That's why he only put a 10% tariff on it. But it's the beginning of a giant negotiation. Aluminum, 70% of aluminum comes in the U.S. It's made in Canada for one singular reason."
While some skeptics doubt Canada's willingness to merge economies, a growing number of Canadians, O'Leary said, are open to exploring such a possibility.
"What is on the table that now 43% of Canadians want to explore more of? Forget all these tariffs. Let's join the two economies, become a behemoth, common currency perhaps, and then take on China," O'Leary added. "I mean, that's really what we're talking about here. We're talking about the security of the north, not the 49th parallel."
When asked about what the U.S. could gain from such tariffs beyond economic leverage, O'Leary said it's about the broader geopolitical benefits:
"Let me assure you that 11 out of 10 Canadians would rather trade their Trudeau pesos for American dollars. They already have American dollar accounts. Trudeau has wiped out 41% of their net worth the last nine years. They want an economic union because it's good for business. Everybody understands that. The two countries are so intertwined, and they both believe in democracy and free speech and freedom and all the rest," O'Leary said. (RELATED: 'I'm Baffled': Mark Halperin Says Trump's 'Opponents' Have Been Completely Failing To Block His Agenda)
O'Leary was asked what can Trump get for the American consumer and the American voter in return for these tariffs.
"Security on energy," O'Leary said.
"Alberta has five times more oil and gas than the entire United States. Complete security on uranium, aluminum, all of the incredible resources Canada has with only 41 million people there and access to it in a free flow. No tariffs."
Trump aggressively employed tariffs to coerce Canada and Mexico into making concessions aimed at resolving the crisis at the southern border. In response, Canada has committed to bolstering security along its northern border, while Mexico has agreed to station 10,000 National Guard troops at the border.
During former President Joe Biden's tenure, approximately 8.5 million migrants were encountered at the U.S.-Mexico border, and this period also saw an increase in fentanyl seizures, primarily driven by Chinese chemical companies. Meanwhile, even though less frequent, illegal crossings at the northern border also surged during the Biden administration.
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