Billionaire entrepreneur Mark Cuban thinks consumers are getting a temporary break — not because the economy’s strong, but because companies are scrambling.
In a social media post earlier this month, Cuban broke down why inflation hasn’t exploded the way many economists predicted. The short answer? Businesses loaded up on goods before tariffs went into effect, and now they’re racing to offload them — even if it means taking a financial hit.
“Let’s talk about why inflation isn’t up, as economists predicted. It’s really simple. I see it in all my product-based companies,” Cuban wrote.
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He said companies borrowed money or drained their cash reserves to buy up inventory early, hoping to avoid tariff-related price jumps. Sometimes that even meant scoring better deals from nervous manufacturers. But that strategy came at a cost.
“They either lose the ability to earn interest (4%)… or they pay interest on a loan (10 to 20%),” he explained. “None of the above is a positive.”
Now stuck with huge stockpiles and tighter cash flow, many companies are cutting prices — not raising them — just to get inventory off the books and free up cash.
“They don’t raise prices. In fact, they may even discount some as a way to clear out inventory and replenish cash or pay down expensive loans,” Cuban said.
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He also called out the volatility of U.S. trade policy, saying companies don’t know how to plan for tariffs that keep changing. That uncertainty has paralyzed pricing strategies.
“The variance in tariffs has made it impossible to know how to manage costs,” he wrote. “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.”
Cuban’s comments come as Walmart and other major retailers warn that prices will rise in the future — a sign that the current discount wave might not last much longer.
So if shoppers are still finding deals in 2025, it may have less to do with a strong economy — and more to do with businesses playing defense.
That defensive strategy has shown up in the data. Retail sales dropped 0.9% in May, according to Census Bureau figures, with many companies slashing prices on everything from apparel to appliances.
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According to the National Association of Home Builders, 37% of builders cut prices in June — the highest percentage since the NAHB began tracking that stat monthly in 2022.
Walmart has already raised prices on essentials like pet food, detergent, and toothpaste after warning of tariff-related increases. And although May’s consumer price index rose just 0.1%, economists are bracing for a delayed wave of inflation once these clearance sales dry up and fresh inventory arrives under new, higher import costs.
In other words, the price tags haven’t caught up with the policy changes — yet. Cuban’s warning isn’t just about inventory; it’s about timing. For consumers, the window to score pre-tariff deals may be closing.
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