Mark Cuban says he'd have to pass on potential tariff costs to pharmacy customers

• Mark Cuban warned Cost Plus Drugs could raise prices due to potential tariffs.
• The pharmacy can't absorb the impact of a high tariff on drugs imported from India, Cuban said.
• US-India trade talks continue as both nations seek a deal amid tariff tensions.

Cost Plus Drugs shoppers could feel the effects of future tariffs in their wallets.

Although the pharmaceutical company is safe from President Donald Trump's tariffs on China, cofounder Mark Cuban said any potential tariff on goods imported from India would force Cost Plus Drugs to raise the price of its medications.

"We won't have a choice," Cuban said during an appearance on the "Somebody's Gotta Win with Tara Palmeri" podcast.

Cuban founded Cost Plus Drugs in 2022 as a discount online medication distributor that aimed to be transparent with consumers on prices and cut out the middleman of the pharmaceutical system. He's been outspoken in his criticism of the Trump administration's policies.

If India tariffs were implemented, he said, his company would be transparent with consumers about the cost of tariffs and broker fees and pass them "directly" on to customers. There would be no way for Cost Plus Drugs to "eat" the costs.

Trump has previously referred to India as a "tariff king," and, more recently, said he plans to implement reciprocal tariffs on countries that charge for US goods. Last week, officials from the US and India gathered to discuss trade issues.

The average tariff rate in the US is around 2.2%, compared to India's 12% average as of 2023, according to data from the World Trade Organization cited by Reuters.

Offering medicine for the lowest price possible is a part of Cuban's online pharmacy's mission. As it stands, consumers pay a 15% markup, plus a $5 fee for labor on each medication and $5 for shipping.

"If you only have a 15% markup and there's a 25% tariff, we'd have to lose money on every single medication," Cuban said.