Mark Cuban’s post about an entrepreneur’s frustration with tariffs: “What this is going to do to our economy is frightening”
Entrepreneur Mark Cuban has been outspoken about his thoughts on President Donald Trump’s new tariffs and his latest post from another reiterates his point.
“Shark Tank” business mogul Mark Cuban recently urged Americans to stock up on essential household items due to President Donald Trump’s new tariffs leading to price increases. Trump recently announced sweeping tariffs affecting 185 countries with a baseline rate of 10% and higher rates for specific countries like China, which is now facing a 125% tariff.
Mark Cuban criticizes Trump tariffs online again
In a recent post, Cuban quoted an unnamed entrepreneur:
“30M in EBITDA wiped out for us in 2 months, a company I spent a decade building decimated in a matter of months. Unbelievable people still don’t even have a basic understanding of tariffs at this point, and the head in the sand approach to what this is going to do to our economy is frightening. We are in cash preservation mode and have paused all shipments from China at this point.”
EBITDA means Earnings Before Interest, Taxes, Depreciation, and Amortization. A company suddenly losing as big a chunk as $30 million can be due to increased costs or lost revenue. Clearly, this entrepreneur is frustrated with the lack of knowledge in how tariffs actually affect businesses and is criticizing policymakers/the public for ignoring the economic impact.
The fact that this business is in “cash preservation mode” - cutting costs, freezing spending, etc - as well attempting to avoid the tariffs by stopping imports entirely shows the desperation they must be feeling.
Trump’s tariffs raise costs for businesses that rely on imports, forcing them to make difficult decisions like raising prices, changing suppliers, or eating the cost. They create inflation, supply chain headaches, and strategic uncertainty.
Cuban has been a loud critic of Trump’s tarrifs, even saying that they could be worse on the economy than the 2008 global financial crisis. This latest post provides a firsthand account of how tariffs can crush a business’ profitability in a grand scale almost overnight.
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