Mark Cuban Predicts Tariffs Will Make Things 'Ugly For Amazon, But Incredible for American Sellers' — But Some Point Out They All Source From China

Tariffs are once again flooding the headlines. They're in your newsfeed, your inbox, and probably your group chat. The Trump administration's sweeping new import taxes—set to hit everything from electronics to apparel—are back in the spotlight, and of course, billionaire entrepreneur Mark Cuban has thoughts. Spoiler: he's not shy about sharing them.

"If these tariffs stick, it's going to be ugly for Amazon, but incredible for all the American sellers," Cuban posted on Bluesky.

That post lit a fuse.

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Cuban's point? Higher costs for imported goods—especially from China—might push consumers toward U.S.-based sellers. It's a perspective rooted in economics: less competition from Chinese sellers, more opportunity for American ones.

But his optimism didn't exactly get a standing ovation.

"I'd love to see data on how many products sold by American sellers are actually made in America?" one user replied.

"The supplies and materials for most products are not in the USA," another added. "Most of the American sellers get their supplies from China. So, the American sellers will also have to raise their prices."

They're not wrong. According to RevenueGeeks, 71% of U.S.-based Amazon sellers source products from China, meaning the tariffs won't just sting foreign companies—they'll squeeze American sellers too.

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The numbers tell a bigger story. A SmartScout chart Cuban reposted shows that in major categories like cell phones & accessories, tools & home improvement, and clothing, Chinese sellers dominate—often accounting for more than 50% of the revenue share. In the cell phones category alone, Chinese sellers are pulling in an estimated $8.3 billion out of $9.6 billion in U.S. sales.

So while tariffs might technically give U.S. sellers an edge on paper, in practice, they're just as exposed.

And it's not just about pricing—it's about consumer spending. Bluesky users weren't shy about that either:

"You are assuming people will still have money to spend. If tariffs hold, companies will slow down or implode and individuals will lose jobs."

"People who have been laid off due to [Department of Government Efficiency] or the economic downturn will NOT be buying stuff on Amazon… irrespective of source country."

"Where are the American sellers gonna get the products to sell?"

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And one user, in peak 2025 fashion, summed up their stance:

"I am currently on an Amazon-free diet."

The reality is, while Cuban sees this as an inflection point for American sellers, the entire ecosystem—from sourcing to consumer demand—is under pressure. And it's not just theoretical.

As The Wall Street Journal reports, Amazon could take a hit on its private-label products and third-party logistics services. And the end of the de minimis loophole—once allowing duty-free imports under $800—is shaking up fast-fashion players like Shein and Temu, further crowding the e-commerce battlefield.

Amazon could take a $5 billion to $10 billion annual hit to operating profit from rising first-party merchandise costs tied to the tariffs, Goldman Sachs tech analyst Eric Sheridan warned, according to Yahoo Finance. 

Sure, the tariffs may have been designed to push back against China—but they're also reshaping U.S. retail. And with consumer wallets tightening and supply chains tangled, even Amazon can't algorithm its way out of this one. 

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