Kevin O’Leary, a businessman, expressed his belief that upcoming trade agreements between the United States and China will set a precedent for other nations.
His remarks came shortly after the two largest economies reached an agreement to reduce tariffs on imports for a period of 90 days.
“What I see is a 10/10 arrangement that benefits everyone, known as a VAT tax,” he mentioned.
As part of the current agreement, the US has decreased the baseline tariff rate on Chinese goods from 145% down to 30%, while China has cut its 125% tariff to 10%.
O’Leary received acknowledgment from Treasury Secretary Scott Bessent for his efforts in the trade discussions, referring to tariffs as “exchange tax.”
“But it’s not something you can easily sell to Congress, so it’s labeled a tariff,” he added.
Despite this, lawmakers, business leaders, and officials from China have argued that broad tariff actions are against the law.
On Tuesday, the US International Trade Court conducted a two-hour session regarding President Trump’s so-called “liberation day” tariffs.
The panel of three judges does not hold the authority to regulate the Trump administration’s capability to change trade policies without Congressional consent.
