Mark Cuban is sounding the alarm again on President-elect Donald Trump’s tariff proposals.
In a Threads post on Friday, Cuban warned that companies are already preparing for potential tariffs on Chinese imports by stocking up on inventory. He explained that this would inevitably lead to higher consumer prices due to the costs of storing excess stock.
Although Cuban didn’t directly mention Trump, he referred to the president-elect’s plan to impose a 60% tariff on Chinese goods, which some economists have warned could create inflationary pressure on the economy.
“Currently, companies importing from China are gathering as much cash as they can to stockpile inventory, anticipating that the tariffs will boost demand for imports,” Cuban wrote. “This capital would normally be used for expansion, employee raises, bonuses, and other operational expenses. However, due to the expense of cash and inventory storage, these companies will increase prices as if they’ve already paid the higher tariffs.”
Cuban, who unexpectedly became a surrogate for Vice President Kamala Harris’ campaign earlier this year, has frequently criticized Trump’s excessive use of tariffs in his economic policies.
“Trump seems to have a new tax cut or tariff for every city he visits, even when it goes against his own policies or the law,” Cuban wrote in an X post back in September.
In an interview with Harris, Cuban called Trump “the Grinch that stole Christmas,” because the 60% tariff would increase the prices of holiday gifts.
In Friday’s Threads post, Cuban also warned that the tariffs could lead China to instruct its companies to stop purchasing American goods altogether.
A spokesperson for Trump dismissed Cuban’s remarks, and Cuban chose not to comment further.
Many economists believe Trump’s tariff proposals will ultimately harm consumers’ wallets.
Economist Paul Krugman suggested that the tariffs could trigger an “inflationary shock” that might surpass any other federal policy action.
An analysis from the Peterson Institute for International Economics, a nonpartisan think tank, indicated that the 60% tariff could raise inflation by 0.4 percentage points in 2025. This would be a setback to the Federal Reserve’s goal of reducing inflation to 2%, as the current inflation rate stands at 2.4%, its lowest in three years.
A study from the Institute on Taxation and Economic Policy, a left-leaning organization, argued that the tariffs would effectively provide a tax cut to the top 5% of income earners in the U.S.
Several company executives have spoken out about the potential impact of the tariffs.
Philip Daniele, CEO of AutoZone, remarked during a pre-election earnings call, “If tariffs are imposed, we will pass those costs onto the consumer.”
Columbia Sportswear CEO Timothy Boyle told The Washington Post that the company plans to “raise prices” due to the tariffs and noted that keeping products affordable for Americans would become “very, very difficult.”
However, BMW CEO Oliver Zipse offered a more optimistic perspective after the company’s Q3 earnings report, suggesting, “We shouldn’t be too nervous about what might happen.” He pointed out that BMW has a strong presence in the U.S., which he believes gives the company an advantage over other automakers.
