While former President Donald Trump has acknowledged that his aggressive tariff strategy might lead to “short-term pain,” some business leaders, including billionaire “Shark Tank” star Mark Cuban, perceive a greater risk of long-lasting economic damage.
In a series of posts on Bluesky this Saturday, Cuban elaborated on his earlier criticisms of Trump’s trade strategies. The co-founder of Cost Plus Drugs cautioned that the extensive tariffs announced by the Trump administration on Wednesday, coupled with the federal workforce cuts initiated by the White House DOGE office, might trigger a financial crisis more severe than the Great Recession of 2008.
“If these new tariffs remain for several years, are enforced, and contribute to inflation, while DOGE continues to implement cuts and layoffs, we may find ourselves in a situation far worse than 2008,” Cuban stated in response to another user’s inquiry regarding the economic ramifications of Trump’s tariff policy.
The minority owner of the Dallas Mavericks did not elaborate on how he connects the sweeping reductions to the federal workforce led by the DOGE office to the nation’s economic stability. Nonetheless, these reductions have targeted agencies such as the Consumer Financial Protection Bureau and the tax enforcement division of the Internal Revenue Service.
Neither Cuban nor representatives for the Trump administration responded promptly to requests for comments from Business Insider.
During the 2008 financial crisis and its immediate aftermath, the nation’s GDP fell by over 4%, the unemployment rate peaked at 10%, and the housing market collapsed, marking what economists now consider the most severe recession since World War II.
In remarks to the press regarding his trade policy, the president has admitted, “We may experience some short-term pain, and people understand that,” but in a Saturday post on Truth Social, he declared, “ONLY THE WEAK WILL FAIL!”
The economic uncertainty arising from Trump’s tariff plan has caused the stock market to plunge and has led consumers to stockpile essential goods while reducing spending on luxury items. Economists and supply chain experts have previously informed Business Insider that the heightened import costs due to the tariffs are expected to lead to increased prices for everything from basic staples like coffee and sugar to clothing and larger purchases such as cars and appliances.
Cuban is not alone in his concerns about the enduring economic effects of the president’s policies. Numerous financial commentators have raised alarms about the tariffs and their possible repercussions.
JPMorgan’s chief global economist, in a research note to clients released on Thursday titled “There Will Be Blood,” indicated that the probability of the global economy slipping into recession had risen from 40% to 60% following Wednesday’s tariff announcement.