No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Monday, October 6, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Mark Cuban says consumers may actually see lower prices due to tariff uncertainty as companies deal with the aftermath of stockpiling goods

by TheAdviserMagazine
4 months ago
in Business
Reading Time: 3 mins read
A A
Mark Cuban says consumers may actually see lower prices due to tariff uncertainty as companies deal with the aftermath of stockpiling goods
Share on FacebookShare on TwitterShare on LInkedIn




As many economists warn of the inflationary consequences of tariffs, billionaire Mark Cuban believes uncertainty surrounding the tariffs may actually bring down prices in some instances. Companies may try to rid themselves of inventory they stockpiled as a result of tariff threats, slashing costs to “get back to cash,” Cuban said in a recent social media post.

Billionaire investor Mark Cuban said there’s a reason why tariffs are not yet causing the sticker shock many consumers are expecting.

The Shark Tank star said on social media on Sunday that inflation has not risen as economists predicted because companies who stocked up on imported products before tariffs went into place are now focused on getting rid of that inventory, even slashing prices to clear out goods in exchange for some quick cash flow. Cuban said he sees this phenomenon in all of his product-based companies.

“The variance in tariffs has made it impossible to know how to manage costs,” Cuban said in a social media post. “So you do all you can to clear out inventory and get back to cash. And take your chances on tariffs not being as big as you feared.”

Indeed, the Commerce Department’s PCE report from last week indicated inflation slowed to a 2.1% annual rate in April from 2.3% in March. That’s despite concerns of investors and economists that businesses will pass down the cost of tariffs to consumers, jacking up the prices of goods, which would lead to greater inflation. 

Companies managing supply chains impacted by tariffs pulled forward shipments of goods to get ahead of the taxes, Cuban said. Tracking data found increases in shipments prior to the implementation of the tariffs. These increases coincided with companies stockpiling goods before they would be tariffed. Since then, traffic at U.S. ports has been down.

But there’s a potential downside to businesses sitting on so many goods, Cuban argued.

“They see the on and off again tariffs in action, so they don’t know how long their inventory will have the value they expected,” he said.

In order to pull forward shipments—sometimes by three to six months, according to Cuban—companies may have taken out loans. But with so much uncertainty around tariffs, businesses may not want to be saddled with debt.

“So they don’t raise prices,” Cuban said. “In fact they may even discount some as a way to clear out inventory and replenish cash or pay down expensive loans.”

Cuban did not respond to Fortune’s request for comment.

Why lower prices aren’t good news

Just because inflation and prices are lower than expected doesn’t mean it’s good news for the companies weathering tariffs or the economy more broadly.

“None of the above is a positive,” Cuban said. 

In order to stock up on inventory, some companies may borrow cash on unfavorable loan terms or use existing cash on hand. While fortunate businesses may be able to make deals with manufacturers, who know the risks of tariffs and are able to offer better prices, other companies may not be so lucky.

By taking out hefty loans to pull forward shipments, companies may have lost the ability to earn interest or invest in other parts of their business, Cuban said. On top of that, they may have to pay interest, sometimes between 10% and 20%, on the loans they took out. 

“This isn’t just small companies,” Cuban said. “This is all companies facing this.” He added that this is the reason Walmart may increase prices in the future.

Cuban has previously warned of the long-term consequences of President Donald Trump’s tariffs in social media posts, even suggesting they could contribute to an economic crisis.

“If the new tariffs stay in place for multiple years and are enforced and inflationary, and [the Department of Government Efficiency] continues to cut and fire, we will be in a far worse situation than 2008,” Cuban said in April.

This story was originally featured on Fortune.com



Source link

Tags: aftermathCompaniesConsumersCubandealdueGoodsMarkPricesstockpilingTariffUncertainty
ShareTweetShare
Previous Post

Redfin Joins the Parade of Housing Bears—How Does Their Prediction Stack Up?

Next Post

Abra CEO Sees $130,000 As Liquidity Floods In

Related Posts

edit post
AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 

AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 

by TheAdviserMagazine
October 6, 2025
0

A lot is riding on the AI boom, and it isn’t just the stock market surge. AI is being touted...

edit post
David Ellison says he’s confident Bari Weiss ‘will invigorate CBS News’ as new editor-in-chief

David Ellison says he’s confident Bari Weiss ‘will invigorate CBS News’ as new editor-in-chief

by TheAdviserMagazine
October 6, 2025
0

Paramount said Monday that it has bought the news and commentary website The Free Press and installed its founder, Bari...

edit post
Dow falls, S&P 500 and Nasdaq rise as AMD surges on OpenAI deal, shutdown drags on

Dow falls, S&P 500 and Nasdaq rise as AMD surges on OpenAI deal, shutdown drags on

by TheAdviserMagazine
October 6, 2025
0

US stocks were mixed on Monday as the federal government shutdown entered another week, while a megadeal between AMD (AMD)...

edit post
Sebi chairman warns retail investors against speculative trading in derivatives

Sebi chairman warns retail investors against speculative trading in derivatives

by TheAdviserMagazine
October 6, 2025
0

Sebi chairman Tuhin Kanta Pandey on Monday said retail investors should avoid speculative trading in derivatives, underscoring the risks associated...

edit post
AMD signs AI chip-supply deal with OpenAI, shares surge 38%

AMD signs AI chip-supply deal with OpenAI, shares surge 38%

by TheAdviserMagazine
October 6, 2025
0

Shares of Advanced Micro Devices (AMD) surged 38% to hit a high of $226.70 on Nasdaq after the company announced...

edit post
Gen Z has a different attitude about dining from baby boomers and millennials—and it shows in smaller tickets at chain restaurants

Gen Z has a different attitude about dining from baby boomers and millennials—and it shows in smaller tickets at chain restaurants

by TheAdviserMagazine
October 6, 2025
0

When Mia Jones goes out to eat with her friends, she wants something that’s just right: not overly popular, but...

Next Post
edit post
Abra CEO Sees 0,000 As Liquidity Floods In

Abra CEO Sees $130,000 As Liquidity Floods In

edit post
Campbell’s Co. (CPB) sees mixed Q3 performance as customers cook more and snack less

Campbell’s Co. (CPB) sees mixed Q3 performance as customers cook more and snack less

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 

AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 

0
edit post
Novogratz’s Galaxy Digital launches retail app to rival Robinhood

Novogratz’s Galaxy Digital launches retail app to rival Robinhood

0
edit post
Halloween Stock Market Contest – Wall Street Survivor

Halloween Stock Market Contest – Wall Street Survivor

0
edit post
What is a bull market? Definition, examples, and investment strategies.

What is a bull market? Definition, examples, and investment strategies.

0
edit post
3 False Claims About Making a Mid-Career Switch to Higher Ed

3 False Claims About Making a Mid-Career Switch to Higher Ed

0
edit post
UK NHS Encourages First-Cousin Marriages

UK NHS Encourages First-Cousin Marriages

0
edit post
AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 

AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 

October 6, 2025
edit post
Novogratz’s Galaxy Digital launches retail app to rival Robinhood

Novogratz’s Galaxy Digital launches retail app to rival Robinhood

October 6, 2025
edit post
Halloween Stock Market Contest – Wall Street Survivor

Halloween Stock Market Contest – Wall Street Survivor

October 6, 2025
edit post
Rekordwoche für Bitcoin: Beflügelt das Allzeithoch nun auch Bitcoin Hyper?

Rekordwoche für Bitcoin: Beflügelt das Allzeithoch nun auch Bitcoin Hyper?

October 6, 2025
edit post
More Workers Push Back as Return-to-Office Mandates Intensify

More Workers Push Back as Return-to-Office Mandates Intensify

October 6, 2025
edit post
David Ellison says he’s confident Bari Weiss ‘will invigorate CBS News’ as new editor-in-chief

David Ellison says he’s confident Bari Weiss ‘will invigorate CBS News’ as new editor-in-chief

October 6, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • AI is becoming the ‘magic fix’ as America places ‘one big bet’ on it not being a bubble, market veteran warns 
  • Novogratz’s Galaxy Digital launches retail app to rival Robinhood
  • Halloween Stock Market Contest – Wall Street Survivor
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.