Billionaire investor Mark Cuban warned that proposed tariffs proposed by former President Donald Trump could significantly increase the cost of Christmas holiday shopping for American families, according to comments made Friday on MSNBC’s “The Beat,” which he later shared on X, formerly Twitter.
What Happened: “I would ask them what they bought their kids for Christmas last year,” Cuban said during the interview. “Then I go through the list and show them how many were made in China because most of them are. Then I tell them with Trump’s tariffs, all those are probably going to go up 60%, and you’re going to have to make choices.”
Cuban emphasized the potential impact on local businesses. “What about the local retailer, the gift shop, the dress store, the sporting goods store, they’re going to be out of luck too because you’re buying less, they’re getting less, so you’re going to put them out of business.”
Separately from Cuban’s comments, financial markets often experience what traders call a “Santa Claus Rally” – a historical market phenomenon that typically occurs in the last week of December through the first two trading days of January.
During the holiday season, retail and e-commerce companies often see increased consumer activity. Major retailers that typically experience higher trading volumes during this period include:
Amazon.com Inc. AMZN reported a 12% increase in net sales, reaching $574.8 billion in 2023, up from $514.0 billion in 2022. Excluding the minor $0.1 billion impact from foreign exchange fluctuations, net sales still reflected a 12% year-over-year growth.
Apple Inc. AAPL posted revenue of approximately $120 billion for the October-to-December quarter, marking a 2.1% increase compared to the same period last year. Net income rose 13% to $34 billion, with both figures surpassing analyst expectations as reported by The Wall Street Journal.
The retail sector’s performance during this period can be influenced by holiday shopping patterns, with both brick-and-mortar and online retailers seeing increased consumer spending. Transportation and shipping companies may also see increased activity due to higher delivery demands during the holiday season.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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