Mark Cuban Sounds Alarm on Tariffs That ‘More Than Doubled’ Costs for Thousands of American Small Businesses: ‘They Are Crushed’

Billionaire entrepreneur and outspoken investor Mark Cuban recently took to BlueSky to spotlight a pressing concern for American small businesses. In a post that’s exemplary of the current macroeconomic environment and concerns of millions of small businesses around the globe, Cuban shared:

“Imagine being a small business with debt, that you used to import products you had manufactured in China. In the time it took to make the products, tariffs were added, that more than doubled your cost. They are crushed.”

His candid message arrives at a time of growing anxiety among small business owners facing an unpredictable economic environment, volatile trade policy, and escalating costs due to tariffs. Cuban’s commentary raises critical questions about the viability of small businesses reliant on global supply chains — and whether states are doing enough to support them.

The Current Economic Landscape

Small businesses are navigating a turbulent economic landscape in 2025. Interest rates remain elevated following years of inflation control measures by the Federal Reserve. Though inflation has cooled slightly, borrowing remains expensive — tightening the noose for businesses that operate on credit.

Supply chain delays have not fully resolved since the pandemic, and global instability, especially concerning trade with China, has introduced additional complications. Many small firms that once found profitability by outsourcing manufacturing to China are now feeling the sting of escalating tariffs.

Don't Miss: 

• Think it’s too late to invest in the booming AI sector? This one’s still under the radar
• China Just Triggered a Semiconductor Supply Crisis — And Investors Are Flocking to Fund This U.S. Startup as One of the Only Solutions

Mark Cuban’s Track Record and Influence

Mark Cuban is no stranger to the struggles of entrepreneurship. From his early days selling software door to door to building and selling Broadcast.com to Yahoo for $5.7 billion, Cuban has consistently advocated for innovation and agility in business. He’s also a well-known voice in the startup ecosystem through his investments on Shark Tank and his support for companies like Cost Plus Drugs, aimed at disrupting bloated pharmaceutical pricing.

Cuban has often positioned himself as a champion of small business, leveraging both his platform and capital to spotlight issues that larger corporations can often weather, but that devastate smaller operators. His latest remarks are not just anecdotal; they echo a broader trend seen across industries that rely on imported goods—especially from Asia.

Understanding the Tariff Landscape in 2025

In 2018, President Donald Trump imposed a series of tariffs on Chinese goods, originally intended to combat unfair trade practices and reduce dependence on foreign manufacturing. However, instead of leading to a domestic manufacturing renaissance, these tariffs have increased costs for U.S. importers — many of whom are small and mid-sized businesses.

In recent months, Trump has ramped up tariffs causing fear and volatility in the markets. Many have speculated the tariffs will cause a recession, while others trust Trump’s broader plan to bring manufacturing back home while reducing trade deficits. Regardless, America is in the early stages of a trade war with China, and now many businesses are facing tariffs as high as 145%. 

The result? Businesses that took on debt to fund inventory or scale operations are now facing doubled import costs — sometimes after products have already been manufactured, as Cuban alludes. With thinner margins and less bargaining power, these small firms are “crushed,” as he succinctly put it.

Tariffs and the Small Business Crunch

Tariffs function as a tax on imported goods, but their real-world impact disproportionately affects smaller players. While large corporations can negotiate bulk discounts, reroute supply chains, or absorb temporary cost hikes, small businesses often lack these levers. A sudden tariff hike mid-production can obliterate projected profit margins, disrupt cash flow, and even push businesses into insolvency.

This problem is compounded when debt is involved. Many entrepreneurs take out loans assuming predictable supply costs and lead times. When those assumptions are shattered by policy shifts, businesses are caught in a vicious cycle of mounting liabilities and shrinking returns.

Mark Cuban’s post encapsulates a harsh reality: Without swift and targeted support, small businesses risk becoming collateral damage in larger geopolitical chess games. As the economy transitions into an era defined by re-shoring, digitalization, and global realignment, policymakers must ensure that small enterprises are not left behind.