May 24, 2025

Texas Businesses Facing Challenges Due to Rising Tariffs

News Summary

Small businesses across Texas are struggling with the rising costs caused by new tariffs. From gourmet cheese makers in Dallas to gemstone retailers in Austin, many are feeling the impact as prices surge. As some business owners are forced to adapt their operations, consumers may soon notice the effects on their grocery bills. With significant reliance on imports, business owners express serious concerns about the future, and trade associations are advocating for governmental relief. The road ahead appears challenging for Texas entrepreneurs as they navigate this complicated economic landscape.

Texas small businesses are struggling amidst rising costs driven by tariffs imposed by the Trump Administration. These tariffs are significantly increasing expenses for consumers and challenging the financial stability of local businesses across the state. As small business owners grapple with complications in pricing and supply chains, many are left with a mixture of frustration and financial uncertainty.

Alon Bernstein, who runs B & B Diamonds in Austin, has felt the impact of these tariffs directly. He has begun to limit his operations by ceasing the practice of sending gemstones abroad for re-cutting due to the complications that have arisen in wholesale transactions. This move reflects a broader trend among small businesses that are increasingly finding it difficult to plan their finances amid unpredictable pricing brought on by tariffs. The ongoing uncertainty is causing some business owners to consider layoffs as a potential outcome of their constrained financial resources.

According to Raji Srinivasan, a marketing professor at the University of Texas at Austin, small businesses typically operate with limited cash flow and workforce resources. This lack of capacity makes it especially challenging for them to absorb rising costs associated with import tariffs. Furthermore, nearly half of supermarket products are affected by these tariffs, impacting commonly purchased items like seafood, coffee, fruit, and alcohol.

The effects of the tariffs are evident in various sectors, including retail and food services. Rich Rogers, the owner of Scardello Artisan Cheese in Dallas, reports that approximately half of his cheese and 70% of his wine inventory originates from imports. The increased import costs compel him to raise his prices, posing a risk of diminishing customer demand. Small business owners across Texas are facing similar dilemmas, as higher costs inevitably lead to increased prices for consumers.

According to data, Texas continued to rank as the number one trading state in the nation, with a trade volume exceeding $850 billion. The U.S. Chamber of Commerce is advocating for relief from the tariffs, highlighting numerous challenges faced by small importers throughout Texas.

Senator Ted Cruz has openly criticized the persistent high tariffs, recognizing them as a de facto tax on consumers and advocating for a resolution to these trade issues. Small business owners, including Yesi Noyola of Kandy Queen Dulceria, are particularly concerned about the impact of tariffs on their operations. With 95% of her products imported from Mexico, Noyola fears that rising import costs will lead to increased prices and potential business closures.

Experts like Dr. Ruben Guerra from the Latin Business Association warn that the tariffs could erode the U.S. competitive edge in trade with Mexico and Canada. They emphasize that as consumer buying power diminishes due to rising prices, the viability of small businesses in Texas is at risk.

In preparation for potential further tariff increases, some business owners are taking proactive measures. Sue Schulz of What’s Poppin Texas is ordering inventory earlier than usual to buffer against expected price hikes. Schulz recalls previous instances where tariffs led to notable price increases, particularly on her popcorn tins, and anticipates facing similar realities again.

Additionally, inflation amplifies the challenges faced by small businesses, driving up the costs of essential ingredients such as chocolate and sugar. This added strain is further complicating the operational landscape for Texas small businesses as they navigate a rapidly changing economic environment.

Overall, the combination of rising tariffs, inflation, and a slowing economy poses significant challenges for small businesses throughout Texas. As they adapt to these pressures, the long-term viability of many local enterprises remains uncertain.

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Author: STAFF HERE COLLEGE WRITER

The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

STAFF HERE COLLEGE WRITER

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