Billionaire and former Harris campaign surrogate Mark Cuban warned of the negative impact of President-elect Trump’s tariff plans, which include a general tariff on imported goods and an additional tariff specific to imports from China, one of the U.S.’s main trading partners.
“Right now every company that imports from China is taking all the cash they can muster, and buying up as much as they can and stuffing it in a warehouse, in anticipation of the tariffs creating accelerated demand for imports,” Cuban wrote on the social platform Threads on Friday.
“That money would have been used for expansion, raises, bonuses and other operational elements,” he added.
Trump has touted tariffs as a way of lifting the U.S. economy, including taxes on all foreign goods and even steeper tariffs on Chinese imports. During his first term, his trade policies included steep tariffs on Chinese goods and a renegotiation of the North American Free Trade Agreement (NAFTA).
Though, many economists associate tariffs with inflation as the additional cost of the tax makes imports more expensive for the individual or business purchasing the product.
In line with Trump’s protectionist trade policies, he has also proposed a general 10 to 20 percent tax of all imported goods, though economists caution that a general tariff could run afoul with many existing trade agreements, potentially resulting in retaliatory consequences.
Trump has also floated a 60 percent tariff on all goods from China. Chinese authorities had told The Hill they don’t want a trade war and stressed the importance of the stability of global production and supply chains.
U.S. businesses are also concerned about disruptions that could result from a general tariff. Seventy-five percent of executives said a 10 percent general goods tariff would “significantly hinder their company’s growth,” according to a recent survey by accounting firm PwC.
In his posts on Threads, Cuban warned that “on the flip side, companies that export are expecting retaliatory tariffs. So they are calling their Chinese buyers and begging them to do what American companies are doing, buying up all the can.” Trade and manufacturing experts have said Trump’s tariff threats are already having an effect on global supply chains.
Cuban suggested that this leads to “more sales,” though now they’ll have to “accelerate buying up all the components in the bill of materials,” which could lead to price spikes.
“This is all happening right now,” Cuban cautioned.
