AP Photo/Abbie Parr

Billionaire entrepreneur and former campaign surrogate for Vice President Kamala Harris, Mark Cuban, argued this week that Donald Trump’s threats of widespread tariffs are already impacting the financial system negatively.

Cuban railed towards Trump’s campaign promise to use tariffs to repair the economy, arguing all through the campaign that they would only negatively affect American consumers.

“Right now each firm that imports from China is taking all of the cash they can muster, and shopping for up as a lot as they are able to and stuffing it in a warehouse, in anticipation of the tariffs creating accelerated demand for imports,” Cuban wrote on Threads, including:

That money would were used for expansion, raises, bonuses and different operational elements.

As a result of money is quite pricey, and it costs money to store inventory, these corporations will increase costs as if that they had paid the expected greater tariffs.

On the flip side, companies that export expect retaliatory tariffs. So they’re calling their Chinese language buyers and begging them to do what American firms are doing, shopping for up all of the can.

Sounds excellent. More sales now. Apart from they have got to accelerate buying up the entire parts within the invoice of materials. Which is also at a constant worth today. But if other firms want these elements, the associated fee goes up.

When these retaliatory tariffs hit , the companies have to wish that the businesses in China they sell to, can find the money for their products. Or far worse, probably the Chinese govt tells them, if they can, to forestall buying from the USA altogether.

“This is all going down at this time,” Cuban concluded, adding, “If somebody has any examples. Would really like to look them within the replies.”

Learn Cuban’s full thread right here.

The publish Mark Cuban Warns Trump’s Tariff Plans Are Already Hurting the Economic system: ‘All Happening Right Now’ first seemed on Mediaite.