'You've got to be hardcore': Kevin O’Leary warns Trump tariffs on China could lead to ‘riots in the streets’ — says this ‘high impact weaponry’ is only solution. How to bet on the US in 2025

O’Leary shared his frustration with China, rooted in his business dealings: “I'm an individual who does business there. My businesses have been absolutely screwed. I've said it countless times. They don't play by the rules. There's nothing reciprocal in our relations.”

As a result, he advocates for strong measures. O’Leary emphasized that the only way to make it work with Chinese President Xi Jinping is to “inflict massive economic pain and risk on him by imposing tariffs on sectors where many Chinese people are employed.”

“The only way to put [Xi] at risk is to say, look, if you want to mess with the largest economy you trade with, then we're going to force a lot of people that make yoga mats or electronics or whatever else it is to be unemployed in your cities, and they'll be rioting in the streets, they won't have any bread, and you will be out of power. That is the only way it's going to work — so very selected high-impact weaponry like tariffs, but you've got to be hardcore,” he explained.

On Feb. 3, President Donald Trump said he agreed to delay sweeping tariffs on goods imported from Canada and Mexico for a month. Tariffs on all imports from China are still set to take effect on Feb. 4.

America is ‘set up to grow’

According to O’Leary, implementing tough measures is essential to leveling the playing field with China.

“[Xi] only understands the stick. That's all he understands. Any weakness at all, he plays off and he has done so for years. So I'm hoping this is the administration that fixes the problem. I have really been hurt by China, and there are millions of other businesses in America in the same boat I'm in,” he said.

To be sure, economists generally view tariffs as a double-edged sword. On one hand, they can protect domestic industries by making imported goods more expensive, giving local manufacturers a competitive edge. On the other hand, higher tariffs may result in increased costs for consumers, as companies pass on the extra expenses. This can lead to inflation, eroding household purchasing power and raising the cost of living.

A 2019 study by economists from the Federal Reserve Bank of New York, Princeton University, and Columbia University analyzed the effects of Trump’s tariffs through late 2018. Their findings were clear: “Our results imply that the tariff revenue the U.S. is now collecting is insufficient to compensate the losses being borne by the consumers of imports.”

Tariffs can also spark retaliation from trading partners, leading to trade wars that disrupt global supply chains and hinder economic growth. Ian Sheldon, a professor and the Andersons Chair of Agricultural Marketing, Trade and Policy at Ohio State University, underscored this risk during a conversation with Business Insider: “We have this integrated market in North America, and we're already in a trade dispute with Mexico over genetically modified corn. It seems counterproductive to me to potentially exacerbate trade relations with one of our large trading partners. It doesn't make any sense to me.”

Still, many business leaders remain optimistic about America’s future under Trump’s presidency — and O’Leary isn’t alone in his confidence. Amazon founder Jeff Bezos recently expressed his own optimism, calling America “the luckiest country in the world” and saying it is “so set up to grow.”

With the U.S. poised for potential growth and renewed strength, those who share this optimism might see opportunities to invest in America’s future. Here are some simple ways to get started.

Invest in American businesses

One of the simplest and most accessible ways to invest in America is through the stock market. When you buy stocks, you’re purchasing a share of ownership in businesses, giving you a stake in their profits and growth potential.

Legendary investor Warren Buffett has championed this strategy for decades, maintaining steadfast confidence in its long-term rewards.

“America has been a terrific country for investors. All they have needed to do is sit quietly, listening to no one,” Buffett wrote in his latest annual letter to Berkshire Hathaway shareholders. His unwavering faith in U.S. equities has been a cornerstone of his success.

“I can’t remember a period since March 11, 1942 — the date of my first stock purchase — that I have not had a majority of my net worth in equities, U.S.-based equities,” he wrote.

For those looking to follow in Buffett’s footsteps, he has consistently advocated for a simple but effective strategy which he referred to at Berkshire’s 2020 annual meeting: “In my view, for most people, the best thing to do is own the S&P 500 index fund.”

This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.

One accessible way to start investing in the S&P 500 and other diversified portfolios is through platforms like Acorns. Acorns makes it easy for anyone, even beginners, to grow their wealth by automatically investing spare change from everyday purchases.

Signing up for Acorns takes just minutes. Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.

For those seeking a more customized experience, Acorns Gold allows for a mix of automated investments and individual stock selection, giving you the flexibility to tailor your strategy.

With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Building wealth through American real estate

Real estate has been another cornerstone of wealth creation in America, and the current housing supply gap highlights a unique opportunity for investors. According to a June analysis by Zillow, the U.S. housing shortage reached an estimated 4.5 million homes as of 2022.