Mark Cuban has some blunt words on the real impact of tariffs
Samuel O'Brient
4 min read
It’s been two weeks since U.S. President Donald Trump moved forward with his plan to levy tariffs against Canada, Mexico and China. So far, the impact is yielding mostly negative results, as prominent stocks fall and consumer fears rise.
Despite Trump’s consistent claims that tariffs will benefit the U.S. economy, a significantly different scenario is unfolding so far. This has led to many people criticizing Trump’s plan to spur economic growth through tariffs.
One critic with plenty to say about Trump’s tariffs is Mark Cuban. The tech entrepreneur is most famous for his years as a judge on Shark Tank but since his departure from the show, he’s been focused on new ventures.
Cuban has also made it clear where he stands on Trump’s tariffs, issuing multiple critiques on social media. He recently tried to discredit a popular narrative, laying out why tariffs may not have the impact Trump believes.
Prominent tech entrepreneur Mark Cuban has made it clear where he stands on the Trump tariffs.
Mark Cuban doesn’t have faith in Trump’s tariff vision
Trump campaigned on the promise that he would use tariffs to boost economic growth for the U.S., claiming that they would help bring jobs back to American soil while simultaneously punishing countries that had “taken advantage” of the U.S. on trade.
While some tech companies, such as Apple (AAPL) and Taiwan Semiconductor Manufacturing Company (TSM) , have made plans to start building new U.S. manufacturing hubs, the economic uncertainty spurred by tariffs has pushed down many tech stocks so far. Meanwhile, consumers are preparing for the prices of most household goods to surge.
In an X post on March 15, Cuban laid out his argument against the claim that tariffs will help bring back the manufacturing jobs that left the U.S. decades ago. He also illustrated a key comparison, noting that capital flows extend to profitable areas, stating that “making stuff” doesn’t generate the same type of profits and equity valuations as AI and software production.
“No matter the tariffs, capital isn’t going to start flowing to non-tech manufacturing , simply because it’s not profitable enough,” he noted. Cuban added that U.S. customers are unlikely to want to pay the premium prices that American-made goods would cost.
Cuban’s take on the impact of tariffs seems popular. Laura Dow, Business Director at China Performance Group, spoke to TheStreet about why she believes his argument is correct, echoing that while industries like tech and finance are profitable enough to attract consistent investment, that isn’t true for manufacturing.
“Simply making imports more expensive doesn’t rebuild these foundations,” she states. “Focusing on services isn’t a weakness—it’s economic reality. Services generate higher margins and global demand, while traditional manufacturing runs on thin margins and requires massive investment in infrastructure and labor.”
Dow also notes that the U.S. is unable to compete with countries like China on the advanced manufacturing front as it lacks the necessary skilled labor, supply chain infrastructure, and automation capabilities. She adds that catching up would require significant investment in all these areas.
Tim Heneveld, Country Director of PERGOLUX, has a similar take on why tariffs aren’t enough to usher in the manufacturing revitalization that Trump seems to be targeting. As he states:
“If the goal is true industrial revitalization, tariffs alone won't do this. There needs to be a strategy with automation, tax incentives, workforce development, and policies that make domestic production more competitive. Otherwise, the tariffs become just another cost of doing business rather than a catalyst for change.”
Cuban sees tech as the way to win the manufacturing wars
All this isn’t to say that Cuban doesn’t think the U.S. can recapture its former manufacturing dominance. However, he doesn’t think it will be accomplished by levying tariffs against trade allies.
An X user responded to Cuban’s post, asking what he would do to help the U.S. win the manufacturing wars of the future. “We have to win artificial intelligence (AI) and Robotics if we want to win the manufacturing of the future,” Cuban replied, having previously stated that the U.S. is behind other countries in terms of robotics progress.
Dow makes a similar argument, stating “A true manufacturing revival would require serious investment in workforce development, automation, and supply chain infrastructure—none of which will happen overnight."
Cuban hasn’t issued any statements on whether or not he agrees with the Trump administration’s stance on AI, which will likely mean less regulation for companies in the space. While that could ultimately serve to help revitalize U.S. manufacturing, it would still take time for the U.S. to catch up to countries like China, as Dow highlighted.
