How Shark Tank Entrepreneurs Are Fighting To Survive The New Tariffs

D onny McCall drove into Shark Tank in 2012 with a pickup truck and a dream. He wanted $100,000 for 10% of Invis-A-Rack, a collapsible cargo rack aimed at tradespeople. The sharks liked what they saw but hated the high production costs that came with McCall's decision to make his product in his hometown of Sparta, North Carolina. McCall said his revenue was about $50,000 in the first year, at a landed cost of $250 per unit.

Kevin O'Leary pushed McCall to move manufacturing overseas, saying it would cut expenses nearly in half and open the doors for working with distributors. "Let's just say that a manufacturer in Asia could make that for $150," O'Leary suggested. ⁘That puts you in business right there, my friend." McCall didn't budge. He was committed to creating jobs in the U.S. and believed customers would pay more for American-made quality. The sharks weren't convinced. None made an offer. Barbara Corcoran said McCall was too resistant and close-minded to be a good partner. O'Leary told him he wasn't willing to do what it takes. Robert Herjavec, whose father worked in a factory, said he respected McCall's values but couldn't back a business that ignored global realities. Even Mark Cuban, who admired the mission, said the numbers just didn't work without going offshore.

To see how small businesses are responding, Forbes reached out to ten Shark Tank entrepreneurs across multiple industries, along with each of their celebrity sharks. Only two sharks returned our calls directly addressing the effect of tariffs.

Mark Cuban says he's surveying all his portfolio companies and looking for ways to shift production back to the U.S., pointing to Guardian Bikes, a company he invested $500,000 for 15% in on Shark Tank in 2017, as one that already does. "All of them that sell products that require a mold of any type have been impacted," says Cuban, who made his thoughts clear about tariffs on just after "Liberation Day" on social media site Bluesky , "If the new tariffs stay in place for multiple years, and are enforced and inflationary, and DOGE continues to cut and fire , we will be in a far worse situation than 2008."

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