Billionaire entrepreneur Mark Cuban criticized Amazon.com Inc. AMZN on Tuesday for inaction amid ongoing tariff disputes, claiming the e-commerce giant “rips off American sellers” in a post on X.
What Happened: Cuban’s comments came in response to ShipHero CEO Aaron Rubin, who predicted that while many U.S. e-commerce businesses will struggle with new tariff policies, surviving brands could ultimately benefit from higher margins and better profitability.
“Ecommerce brands will make more money and have higher margins thanks to tariffs and enforcement,” Rubin stated in a video posted to X.
The exchange highlights growing tensions over trade practices as the President Donald Trump administration’s tariff policies—which have reached up to 145% on Chinese imports—reshape the competitive landscape for U.S. online sellers.
Why It Matters: According to Rubin, approximately one-third of Amazon’s merchandise comes from Chinese sellers who have historically exploited loopholes like Section 321, which allowed tariff-free entry for shipments valued under $800. The elimination of this provision, effective May 1, could level the playing field for American businesses.
This isn’t Cuban’s first critique of the current tariff situation. Earlier in April, he called supporters of tariffs “hypocrites” if they don’t “buy American EXCLUSIVELY,” suggesting that economic patriotism requires more than rhetoric.
The tariff changes come amid reports that Chinese firms are using shell entities to circumvent duties. These companies reportedly establish limited liability companies in the U.S. to dodge customs fees, creating what one international trade attorney described as “a game of whack-a-mole” for regulators.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
