The recent tariffs passed by the U.S. government have wreaked havoc on the U.S. economy over the past few days, pushing down even the strongest sectors.
With consumers bracing for substantial price increases and companies maneuvering to avoid being drowned in higher operational costs, most of the U.S. economy is in panic mode.
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This is a far cry from the impact President Donald Trump promised his tariffs would have, presenting them as a means of spurring economic growth and creating more jobs for U.S. workers.
Right now, many questions abound regarding how long these tariffs will last and the best ways to stay ahead of them and avoid financial losses. Economic experts have made many predictions, most grim, anticipating the outcome of the trade war. But Mark Cuban recently issued a surprising forecast regarding the overall winner.
Since before the trade war began, billionaire investor Mark Cuban has weighed in on plenty of Trump’s policy decisions. His takes have ranged from criticizing the lack of logic behind them to advising consumers on how to handle the coming price increases.
As TheStreet’s Patricia Battle reports, he recently advised consumers to employ the tactic of panic buying when it comes to household utilities. “Even if it’s made in the USA, they will jack up the price and blame it on tariffs,” he stated, naming toothpaste and soap as two examples of products to stock up on.
Related: Mark Cuban sounds alarm on how consumers should handle tariffs
More recently, Cuban examined the rivalry developing between Trump and Tesla CEO Elon Musk, predicting who would win in a battle between two extremely powerful men.
Until recently, Musk enjoyed the privilege of being one of Trump’s closest advisors, but the tariffs seem to have divided them. Musk has advocated for no tariffs, even though his company is less exposed to them than other automakers, as it builds all-electric vehicles (EVs) sold in the U.S. on American soil.
In a Bluesky post on April 6, Cuban laid out his take on the tariff battle between Trump and Musk, stating:
“Free Trade, zero tariffs Elon vs Full Tariff Trump is going to be interesting to watch. The stakes are enormous for the American People. Who comes out on top? I think unfortunately for the economy, in this case, it’s Trump.”
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Cuban seems to believe that Trump will ultimately use his power as President to push Musk out, something he’s already discussed doing. He recently implied that Musk will be leaving his post at the so-called Department of Government Efficiency (DOGE) in the next few months.
However, Cuban also acknowledges that Trump’s tariff policies winning out is likely not in the best interest of the American people, for whom the stakes are indeed extremely high.
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By this logic, a free trade system that strengthens relations with U.S. allies is more beneficial than levying tariffs that may not yield any benefit for years. And Cuban is far from the only economic expert who doesn’t see tariffs as the best way forward.
Many people in the economic research space have sounded the alarm recently as the tariffs have taken effect.
As stocks have tumbled, more and more people have speculated that the trade war may lead to a recession. Now, some are claiming that the U.S. economy may have already entered one.
Related: Elon Musk may have just extended an olive branch to Mark Cuban
Michael R. Strain, Director of economic policy studies at the American Enterprise Institute, recently described the tariffs as an “economic emergency,” adding that they would constitute the biggest tax increase the U.S. has seen since 1968.
“Our trade partners would retaliate,” he states. “By raising taxes and prices, they would erode household income and spending. Business investment spending and US exports would be hit hard. If sustained, this trade war would be likely to cause a recession.”
Cuban sees tariffs as having a similar impact on the U.S. economy. In an earlier Bluesky post, he stated it will be in a “far worse situation than 2008” if the tariffs remain in effect and continue to be enforced.
Of course, if the U.S. experiences an economic disaster similar to the magnitude of the 2008 financial crisis that Cuban alludes to, Trump may be pressured to take action to mitigate the impact of the tariffs.
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The post Mark Cuban makes shocking trade war prediction appeared first on Yahoo Finance.
