Billionaire investor Mark Cuban offers his take on why inflation hasn’t spiked to the extent that it was expected by leading economists, in response to the “Liberation Day” tariffs imposed by President Donald Trump
What Happened: On Sunday, in a post on X, Cuban said that businesses, both large and small, are scrambling to get ahead of potential tariff hikes by using their cash reserves or taking on debt to stockpile inventory.
“They borrow money or use their available cash to front-run the tariffs and buy as much inventory as they can,” he says, adding that “in many cases, they get a better price because the [manufacturer] knows the risks post tariffs.”
However, Cuban warns that none of this “is a positive,” arguing that such an inventory strategy comes at a cost, with businesses either having to sacrifice interest income on their cash holdings or incur high borrowing costs of between “10% to 20%” to …