AI Bubble and Tariffs: Insights from Shark Tank Investor Kevin O'Leary

Kevin O'Leary, a "Shark Tank" investor, dismisses the AI boom as a bubble, saying it generates measurable savings. He also believes tariffs are not as impactful as feared, citing clarity on manageable rates for trade partners. O'Leary advises investors to stay in the market during downturns, despite the risk of missing out on significant returns.

Kevin O’Leary, a prominent investor known for his role on the television show "Shark Tank," recently addressed concerns about the impact of President Donald Trump’s tariffs and the ongoing AI boom. In an interview with Business Insider, O’Leary dismissed fears surrounding the AI boom, stating that it generates measurable savings and is fundamentally different from the dot-com bubble [2].

O’Leary also downplayed the potential negative effects of Trump’s tariffs, noting that the ongoing clarity on manageable rates for trade partners has reduced uncertainty. According to O’Leary, the rebound in U.S. equities since the announcement of Trump’s "Liberation Day" tariffs in April is a significant indicator that investors should remain in the market during downturns [2].

Meanwhile, recent data suggests that the U.S. trade deficit has narrowed considerably, with the overall trade gap decreasing by 16.0% in June to $60.2 billion. This is attributed to a sharp drop in consumer goods imports and a significant reduction in the trade deficit with China, which narrowed by 70% over five months [1].

However, the tariffs have also shown signs of spilling over into the domestic services sector, with business activity in July flatlining due to input cost increases and tariff policy uncertainty [1]. The Institute for Supply Management’s nonmanufacturing purchasing managers index slipped to 50.1, indicating a softening in the services sector.

Despite these developments, O’Leary advises investors to stay invested during market downturns. He believes that the clarity on tariff rates and the measurable savings generated by AI will provide a buffer against potential economic headwinds.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3TX11A:0-us-trade-gap-skids-to-2-year-low-tariffs-exert-pressure-on-service-sector/
[2] https://stocktwits.com/news-articles/markets/equity/shark-tank-kevin-o-leary-dismisses-trump-tariff-concerns/chrnmBHRd4h