Hedge fund manager Bill Ackman has suggested that China should focus on negotiating rather than retaliating against U.S. tariffs.

During an appearance on 'TMZ Live', O'Leary reiterated that tariffs should compel China to adhere to fair trade practices, underscoring the urgency of the situation.

On April 9, 2025, President Donald Trump announced an increase in tariffs on China to 125%, citing a lack of respect from China for global markets.

This increase follows a series of tariff hikes, starting with a 20% tariff last month and a planned additional 34% before reaching the current rate.

In light of these developments, Kevin O'Leary has advocated for even higher tariffs, suggesting a drastic 400% tariff on Chinese goods to pressure the Chinese government into negotiations.

O'Leary has accused China of engaging in dishonest practices regarding technology and trade, claiming they have been 'lying, cheating and stealing'.

He emphasized the need for a fair competitive environment for American entrepreneurs in China, reflecting a broader sentiment among U.S. business leaders.

O'Leary's comments resonate with a growing number of business leaders who believe that stronger tariffs are essential to protect American industries.

In a related move, Trump announced a 90-day pause on reciprocal tariffs affecting 185 countries, although China was notably excluded from this pause.

Expressing frustration over the impact of Chinese practices on American businesses, O'Leary argues that stronger tariffs are necessary to level the playing field.

Meanwhile, Ray Dalio, founder of Bridgewater Associates, has supported Trump's approach to trade negotiations as a preferable alternative to worsening economic imbalances.

However, some experts, including former Treasury Secretary Larry Summers, caution that increased tariffs could have negative repercussions for the U.S. economy.