Kevin O’Leary seems to have changed his tune on President Trump’s tariffs.
In a recent interview with NewsNation’s The Hill, the Shark Tank star expressed his doubts on whether retailers would be willing to absorb the rising costs of imported goods thanks to Trump’s tariff war.
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“We’re at the beginning of a negotiation,” O’Leary said, predicting that retailers would lobby the government to help reduce the impact of tariffs on their bottom lines.
O’Leary previously advocated for a bully approach to tariffs on China. During an appearance on the Laura Coates Live podcast in April 2025, O’Leary had this to say. “Let’s just level the playing field. The [Chinese] government cheats, steals, robs, and does not play by any rules. I don’t think 125% is enough — 400%!”
Less than two months later, O’Leary appears to be singing a different tune when it comes to tariffs, telling The Hill that he expects both customers and retailers to share the costs of Trump’s trade war.
“There’s going to be some distribution of the pain between increased prices, and retailers will take some of the hit, but it really depends what the hit is,” said O’Leary. “We don’t know. Is it 10%? 20%? 25%? What is it? Nobody knows.”
Trump, meanwhile, has different views on the matter.
In a recent post shared on his Truth Social platform, the president wrote, “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
But O’Leary, a Canadian citizen, has pushed back on this. “This idea that the president says, ‘Listen, retailers, eat the tariffs.’ That’s not going to happen,” said O’Leary.
Walmart’s tariff announcement
Some retail experts believe Walmart’s intention to raise prices in response to tariffs will set the tone for how the retail industry as a whole will respond to the trade war.
As of 2023, Walmart accounted for 7.3% of overall consumer spending in the U.S., and nearly 19% of food and beverage spending. It remains to be seen if the retailer’s hold on a major portion of American wallets will slip as consumers look for lower prices elsewhere.
In a separate interview with The Hill in May, a Walmart spokesperson said, “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”
Walmart CEO Doug McMillion also said the company isn’t “able to absorb all the pressure” from the tariffs during an earnings call in the same week.
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What the experts say
Today.com recently published a list of retailers that, along with Walmart, have announced or are expected to announce price increases in response to the higher costs of importing goods. These include popular big box chains like Target and Best Buy, plus a long list of automakers and tech giants like Apple and Samsung.
Matt Pavich, senior director of strategy and innovation at Revionics, shared his thoughts during an interview with Retail Dive. “When Walmart makes pricing moves, the rest of retail follows, to some degree, on a lot of products.”
However, retail economists note that getting pricing right at this moment when consumers are extremely careful with their spending is a tough needle to thread. “No retailer wants to be the one that’s called out on social media as gouging the consumer,” Ali Furman, Consumer Products Industry Leader at PricewaterhouseCoopers, shared with Retail Dive.
Speaking to RetailCustomerExperience.com, Rob Garf — SVP of strategy and insights at Cordial — said, "With 70% of U.S. adults anticipating higher prices and 43% already experiencing increases, we’re seeing significant pressure on both retailers and consumers. The recent 28% year-over-year decline in consumer sentiment reflects growing spending shifts, particularly among the Boomer and Gen X demographics.”
NielsenIQ’s recent "North America Tariff Sentiment Study" echoes Garf’s concerns. With nearly 10,000 Canadians and Americans surveyed in March 2025, 61% of U.S. consumers and 86% of Canadians reported they expect tariffs to “negatively affect their country’s economy this year,” according to RetailCustomerExperience.com
Protecting your wallet against uncertainty
If, like the majority of consumers, you’re worried about the costs of tariffs taking a bite out of your budget, there are a few things you can do to cut costs and find some more wiggle room in your wallet.
First off, dedicate a little more time to planning your grocery shopping each week. Searching for good deals in the flyers, planning to buy locally and seasonally, and buying items with coupons can help you trim your food budget. Having a good meal plan can also save you from impulse purchases at the grocery store, or from spending your money on last-minute takeout and delivery when dinner time rolls around.
You can also look for ways to trim your budget by carefully tracking your spending each month. When you see how much you spend on entertainment, subscription services and shopping trips, you may be inclined to trim these expenses and look for cheaper ways to enjoy your leisure time.
Finally, take a look at your quarterly or yearly expenses like insurance, travel and even veterinary bills. Try shopping around for better deals on your home or auto insurance, and look to spend your holidays closer to home this year, or opt for a last-minute deal to a popular destination.
Finding creative ways to save can make budgeting less painful and keep the uncertainty of rising prices from cramping your lifestyle.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
