Texas importers face steep tariff increase

Tariff Surge in Texas

Texas importers paid $1.5 billion in tariffs in March 2025, a 167% increase from March 2024, according to a report from Farmers for Free Trade.
The report found that $1.2 billion of the tariffs paid in March were tied to executive actions, including orders issued during Trump's second term.

Impact on Businesses

"Tariffs land directly on the back of the consumer and the end user," said Kendall Garrison, CEO of Amplify Credit Union. "They're not paid by some nebulous, unknown foreign country."
Business leaders warned that the cost increases may be just the beginning, with new tariffs on steel and aluminum taking effect this week.

Tariff Breakdown

Texas paid the second-highest amount in executive-order-related tariffs of any state in March, behind only California.
Imports from China accounted for the largest share, totaling $675 million and facing an average tariff rate of 30.8%.
Texas importers paid 16 times more in tariffs on Chinese goods compared with last year, and 22 times more on imports from Mexico and Canada.

Passing Costs to Consumers

As costs rise for importers, business owners say they have little choice but to pass those increases along to customers.

"I can't afford to eat that cost, so therefore the customer has to eat that cost," said Robby Pettinato, co-owner of Toy Joy.

Economic Uncertainty

Speakers said the full impact of the shifting tariff landscape remains uncertain, but many companies already are pulling back on investments due to concerns over economic instability.

"When we see a recession on the horizon, we automatically become more conservative in our lending standards, cutting off that capital that small businesses need to expand," Garrison said. "It's a vicious cycle."
For more information, visit AngelouEconomics or read about the impact of looming semiconductor tariffs: Austin-area experts, lawmakers weigh in on impact of looming semiconductor tariffs