Mark Cuban Says Trump's Tariffs Caused Companies To Panic-Buy Inventory, Resulting In Cost-Cutting And Job Losses

Billionaire entrepreneur Mark Cuban is being straightforward as ever when it comes to the economic impact of President Donald Trump's tariff policies.

Over the past couple of weeks, Cuban has warned that the latest round of sweeping tariffs and deep government cuts could do serious damage to the U.S. economy. In fact, he believes it could be even worse than the 2008 financial crisis.

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‘Cash Taken From Being Able to Invest or Hire’

On social-media platform Bluesky, Cuban explained how the tariffs are already affecting businesses in ways some people may be overlooking.

“What some people aren't factoring into their analysis is the reality that companies were buying tons of inventory to beat the tariffs,” Cuban wrote on Wednesday. “That's cash taken from being able to invest or hire. In fact, they probably cut costs and jobs as a result.”

In short, companies scrambled to stock up before tariffs kicked in, tying up cash they would've used for hiring or growing their business. Instead, they had to slash budgets and, in many cases, lay people off.

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“Far Worse Than 2008”

Cuban believes this could just be the beginning. In a stark warning on Bluesky, he said, “If the new tariffs stay in place for multiple years, and are enforced and inflationary, and [the Department of Government Efficiency] continues to cut and fire, we will be in a far worse situation than 2008.”

DOGE has been slashing federal jobs and funding under Elon Musk's leadership. The cuts have affected everything from the IRS's tax enforcement unit to the Consumer Financial Protection Bureau.

Cuban says these cuts, combined with rising costs from tariffs, could devastate both consumers and the broader economy. Trump temporarily paused most tariffs for 90 days, but Cuban isn't impressed. 

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“Elections Have Consequences”

Cuban reminded voters that they shouldn't be surprised when campaign promises turn into policy. “Elections have consequences,” he posted.

During a recent appearance on “The Lincoln Project Podcast,” Cuban explained he actually supports reducing the size of government—but not the way it's being done now.

“Trying to cut the size of government… and cutting a lot of people for better or worse, comes with the territory,” he said. “But if there's no plan behind shock and awe, it's just shock and awful.”

He pointed to real-world effects like job losses in small towns where agencies like the U.S. Forest Service are major employers, or where cuts to education and research budgets ripple through local economies.

Cuban also slammed the recent Social Security changes, calling them a back-door way to reduce benefits. "Make Grandma and Grandpa finally get online to confirm their payments. What an amazing back-door way to cut payments! Gonna be some upset seniors at town halls!”

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