Investor Kevin O’Leary urged investors to look past Canada’s tariff-driven economic turmoil, arguing that the current chaos could create a rare opportunity for long-term gains.
O’Leary Sees Canada Investment Opportunity
On Monday, in a post on X, O’Leary said he was assessing the situation “through the lens of an investor” and urged investors to focus on where the market is headed.
“The analogy I love to use when it comes to investment is, I don’t want to invest where the puck is, I want to invest where the puck is going,” he said.
He argued that the current tariff environment could not continue indefinitely because of the economic damage it could cause.
“Carney cannot sustain 50% tariffs on the Canadian economy,” O’Leary said, referring to Canadian Prime Minister Mark Carney.
He added, “That will put the country into a recession and he knows it.”
O’Leary also said he did not believe “26 states in the US can sustain 50% tariffs with their biggest trading partner,” adding that President Donald Trump knows the economic stakes.
“So this is a politically motivated period of time,” O’Leary said, estimating the disruption could last “60, 90 days.”
He argued that investors could use the turmoil to invest in Canada “at the bottom” and potentially generate a “ridiculously fantastic return over the next five years.”
Canada’s Political Pressure
Last week, Economist Justin Wolfers said Trump’s tariff threats had pushed Canada into a corner, making the dispute about more than trade it had become a question of national sovereignty and political survival.
He noted that the U.S. and Canada already had the USMCA, while Trump’s push for a new deal and comments about making Canada the 51st state had fueled Canadian outrage.
Wolfers said Carney therefore had little political room to avoid retaliating.
US-Canada Trade War Escalates
Earlier, former Labor Secretary Robert Reich called Trump’s escalating trade war with Canada “irrational,” warning higher Canadian wood prices could worsen the U.S. housing market as new-home sales fell 10.5% in July.
Transportation Secretary Sean Duffy said Canada would be “foolish” to think it could win a trade war with Trump, predicting Carney would return to negotiations as tariffs pressure Ottawa.
Canada has vowed to match the U.S. tariffs “dollar for dollar” starting Sept. 8.
Former Vice President Mike Pence also warned the tariffs could hurt American consumers and businesses.
He stressed that “American businesses and American consumers pay American tariffs” and urged the U.S. and Canada to prioritize negotiations over confrontation.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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