Mark Cuban Reveals 3 Ways Trump’s Trade War Could Impact American Consumers
Written by
Laura Bogart
Edited by
Kristen Mae
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Nobody would accuse billionaire entrepreneur, tech whiz, and Shark Tank star Mark Cuban of being a shrinking violet. Across a variety of talk shows and social media platforms, Cuban has made his opinions known about a range of financial topics. Recently, he voiced concerns about the Trump administration’s proposed tariffs, arguing they are the opening shots in a looming trade war.
Writing on Bluesky, Cuban warned that the economic fallout from such a trade war could be so severe for American businesses and consumers that he would support retaliatory measures from Canada and Mexico — even if it meant temporary hardships — if it exposed what he perceives as delusions about the effectiveness of these tariffs:
“I’m going to put my rich guy hat on and say I hope that Mexico and Canada issue equal, retaliatory tariffs and stick to them for an extended period … But it’s the only way for tariffs to be seen for what they are.”
It’s a bold claim, but Cuban has his reasons.
It Could Hurt Small Businesses
Cuban worries that the broadness of the proposed tariffs could significantly increase expenses for American businesses, which would ultimately pass those costs down to consumers. Smaller businesses — particularly those in the manufacturing and automotive sectors — would not only have to account for rising prices of materials but also manage increased regulatory and compliance burdens associated with the tariffs.
These processes can be costly and time-consuming — challenging enough for large-scale enterprises to navigate. For smaller businesses, where time and money are at a premium, the burden can be compounded. With rising costs for materials, labor, and compliance, many small businesses may have no choice but to charge more.
It Could Target Specific Companies
Back in September of 2024, when Cuban was a surrogate for Kamala Harris, he called out a specific threat Trump made against the farm equipment manufacturer John Deere. Trump warned that if John Deere moved operations to Mexico, he would impose a 200% tariff on the company’s products. While this might seem like a move to protect American jobs, Cuban called it out as a poor business decision.
His reasoning? If John Deere faced higher tariffs than its Chinese competitors, those competitors’ products would likely be cheaper in the U.S., potentially weakening an iconic U.S. company. Cuban’s withering assessment: “Good way to destroy a legendary American company and increase costs to American buyers.”
It Could Spike Inflation
Cuban has also sounded the alarm that tariffs are inherently inflationary, going so far as to say that “across the board tariffs are inflationary” because they invite retaliatory measures from other countries.
Shortly after the 2024 election, Cuban warned that a proposed 60% tariff on Chinese imports could drive up inflation in the U.S. economy. He speculated that every company that imports from China would rush to stockpile supplies in advance of the tariffs taking effect.
“That money would have been used for expansion, raises, bonuses, and other operational elements,” he said. “Because cash is relatively expensive, and it costs money to store inventory, those companies will increase prices as if they had paid the expected higher tariffs.”
Whether Cuban’s assessments will prove correct remains to be seen, but one thing is clear: He doesn’t hold back when it comes to his convictions.
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