Mark Cuban: Trump’s Tariffs Will Affect This Class of People the Most
Written by
Jake Safane
Edited by
Jenna Klaverweiden
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Tariffs have been front and center in the second Trump administration, and so far, they have coincided with a lot of economic angst, such as with the recent stock market correction.
But it’s not necessarily wealthy investors who will be hit the hardest by tariffs. Instead, low-income Americans will be hurt the most by tariffs, according to entrepreneur Mark Cuban.
Here are more details about what Cuban has said regarding who will be hurt most by tariffs.
Tariffs Could Create Winners and Losers Among Taxpayers
In a recent post on X, Cuban responded to a post from the “All-In” podcast, where U.S. Secretary of Commerce Howard Lutnick talked about how the administration views tariffs. According to Lutnik, if the U.S. were to put a tariff on an item like a mango, which can’t be grown in the U.S. on a widespread basis, then that effectively makes the tariff a consumption tax.
However, as Lutnik said, that’s not the administration’s goal. He explained that the administration wants to put tariffs on items that will encourage companies to reshore, rather than offshore, manufacturing, which could increase U.S. jobs. Meanwhile, for items that do continue to get imported and incur tariffs, that revenue could be used to lower income taxes.
However, some are skeptical that this will be the result of tariffs. “The Trump administration’s tariffs operate as both a consumption tax and a strategy for reshoring. However, one cannot ignore how President Trump views tariffs as a critical revenue source for the federal government,” said George Carrillo, co-founder and CEO at Hispanic Construction Council.
That means that tariffs could create winners and losers among taxpayers.
As Cuban put it, the biggest losers will be the “poorest people” who make less than the standard deduction — $15,000 for single filers and $30,000 for joint filers in 2025. Because they don’t earn enough to pay income taxes (but still pay Social Security and Medicare taxes, sales taxes, etc.), according to Cuban, they won’t benefit from tariffs being used to lower income tax rates.
Meanwhile, Cuban explained, these low-income individuals will still face the difficulty of paying more for essentials, like food and clothing, as a result of the tariffs.
“While the administration promises that tariffs are designed to encourage reshoring, the immediate effect is a regressive tax system that punishes those least able to afford rising costs. Imported goods, from essential clothing to produce, are unavoidable purchases for many families, making it impossible to escape these price hikes,” Carillo said. “While reshoring in industries like auto manufacturing could bring jobs back, the long-term benefits must contend with the short-term harm being inflicted on the broader population.”
Strategic vs. Broad Tariffs
While Cuban said that low-income workers will be hit hardest by Trump’s tariffs, that’s not to say he’s fully against tariffs.
In a recent interview with Tara Palmeri, Cuban noted that strategic tariffs can be beneficial. For example, if China subsidizes its steel industry and tariffs can encourage more U.S.-based steel manufacturing, that might be worth it as more people get hired domestically, he said. However, it’s the broad-based tariffs that can be damaging.
One example would be Cuban’s own company, Cost Plus Drugs, which he said on the podcast would have to pass tariff costs on to consumers. The company aims to provide affordable prescription drugs by charging only a 15% markup. It sources some medications from India, so if it faced a 25% tariff, for example, it would be losing money on every order, Cuban explained. Thus, consumers would have to pay the tariffs in the form of higher prices.
It remains to be seen what the full impact of these tariffs will be for consumers, but as Cuban posted on Bluesky on April 2, it’s best to be prepared. He advised consumers to stock up on consumables now in the event of higher prices due to tariffs.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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