10 Shark Tank Companies Caught On The Front Lines Of Trump’s Trade War

Forbes

These small businesses were lucky enough to snag deals on Shark Tank. Tariffs will upend their businesses and suddenly they’re scrambling to survive.  Read the full story on Forbes: https://www.forbes.com/sites/brandonkochkodin/2025/04/26/10-shark-tank-companies-caught-on-the-front-lines-of-trumps-trade-war/  Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1  Fuel your success with Forbes. Gain unlimited access to premium journalism, including breaking news, groundbreaking in-depth reported stories, daily digests and more. Plus, members get a front-row seat at members-only events with leading thinkers and doers, access to premium video that can help you get ahead, an ad-light experience, early access to select products including NFT drops and more:  https://account.forbes.com/membership/?utm_source=youtube&utm_medium=display&utm_campaign=growth_non-sub_paid_subscribe_ytdescript  Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes:  http://forbes.com  Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Transcript

00:00Today on Forbes, 10 Shark Tank companies caught on the front lines of Trump's trade war.

00:08Donnie McCall drove into Shark Tank in 2012 with a pickup truck and a dream.

00:14He wanted $100,000 for 10% of InvisiRack, a collapsible cargo rack aimed at tradespeople.

00:21The Sharks liked what they saw, but hated the high production costs that came with McCall's

00:25decision to make his product in his hometown of Sparta, North Carolina.

00:31McCall said his revenue was about $50,000 in the first year, at a landed cost of $250 per

00:36unit.

00:38Kevin O'Leary pushed McCall to move manufacturing overseas, saying it would cut expenses nearly

00:44in half and open the doors for working with distributors.

00:47O'Leary suggested, quote, let's just say that a manufacturer in Asia could make that

00:53for $150, that puts you in business right there, my friend.

00:57McCall didn't budge.

00:59He was committed to creating jobs in the U.S. and believed customers would pay more for

01:03American-made quality.

01:06The Sharks weren't convinced.

01:08None made an offer.

01:10Barbara Corcoran said McCall was too resistant and close-minded to be a good partner.

01:15O'Leary told him he wasn't willing to do what it takes.

01:18Robert Herjavec, whose father worked in a factory, said he respected McCall's values,

01:23but couldn't back a business that ignored global realities.

01:27Even Mark Cuban, who admired the mission, said the numbers just didn't work without

01:31going offshore.

01:34For years, the Sharks, just like most private equity firms, advised entrepreneurs to move

01:39manufacturing overseas to save money.

01:41It was good advice.

01:44Lower costs overseas boosted profits and gave consumers cheaper goods.

01:48Prices for products like clothing dropped roughly 10% in the decade after China joined the World

01:53Trade Organization in 2001, according to a 2017 Federal Reserve Bank of New York study.

02:00As long as supply chains ran smoothly, the strategy was a recipe for growth and profits.

02:06Even the COVID-19 pandemic exposed the risks of relying on distant factories as the world

02:11and global commerce temporarily shut down.

02:15Now those risks are front and center again, only this time they are self-inflicted by President

02:20Trump's ham-handed and chaotic tariff plan.

02:25To see how small businesses are responding, Forbes reached out to 10 Shark Tank entrepreneurs

02:30across multiple industries, along with each of their celebrity sharks.

02:34Only two sharks returned our calls directly addressing the effect of tariffs.

02:39Mark Cuban says he's surveying all his portfolio companies and looking for ways to shift production

02:43back to the US, pointing to Guardian Bikes, a company in which he invested $500,000 for 15%

02:50back on Shark Tank in 2017, as one that already does.

02:55Cuban says, quote, all of them that sell products that require a mold of any type have been impacted.

03:02Cuban had already earlier made his thoughts clear about tariffs just after Trump's so-called

03:07Liberation Day on social media site Blue Sky, saying, quote, if the new tariffs stay in place

03:12for multiple years and are enforced and inflationary, and Doge continues to cut and fire, we will

03:18be in a far worse situation than 2008.

03:23Fellow shark Damon John adds that while every business is different, they're all trying to

03:27make sense of the broader picture while, quote, waiting and praying for a return to normalcy.

03:33John says his companies are paying close attention not just to tariffs, but to the value of the

03:38dollar, inflation, and how shifting consumer habits might ripple through their markets.

03:44Most of the business owners say they're in crisis mode, blindsided by rising costs and

03:49rules that can change as fast as the president can post to his true social account.

03:54Others will say manufacturing in China wasn't a choice, it was the only option.

03:58Many apparel operations, including companies like NYC sock maker Bombas, which was backed

04:04by Damon John in 2014 and has had lifetime revenues in excess of $1 billion, contend producing

04:11in the U.S. was either logistically impossible or would make their products too expensive to

04:15sell.

04:16Few had a plan for dealing with the tariffs, which are as high as 145% for goods coming from

04:22China.

04:23Most are just trying to hang on and hoping for a resolution sooner rather than later.

04:28Some say they'll stop selling certain products altogether.

04:32Others are already weighing what they see as inevitable if nothing changes – shutting

04:36down and walking away from the business they built.

04:41For full coverage, and to read about how 10 different Shark Tank companies are managing

04:44the tariff pressures, check out Brandon Kokodin's piece on Forbes.com.

04:51This is Kieran Meadows from Forbes, thanks for tuning in.

04:54Kieran Meadows from Forbes, thanks for tuning in.

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