Mexico is Texas' largest trading partner.


https://www.texastribune.org/2025/01/30/trump-tariffs-impact-texas-economy/

President Donald Trump’s vow to levy punishing taxes on the country’s top trading partners is already having the Texas business community on edge, with even Republicans who support the president acknowledging it could cause pain in the state.

Trump threatened to implement 25% tariffs on goods imported from Canada and Mexico and an additional 10% tariff on China, which he subjected to tariffs under his first presidency. Mexico and Canada have threatened to levy retaliatory tariffs on the United States.

Mexico is by far Texas’ largest trading partner, followed by Canada with China coming closely behind. Free-trade advocates warn that tariffs on goods will be passed onto consumers — meaning higher prices for Texans. Any positive benefits such as bringing manufacturing back to the country may not appear for years.

“There would undeniably, indisputably be a negative economic impact if tariffs were to be enacted,” said Glenn Hamer, president and CEO of the Texas Association of Business, a group that supports many of Trump’s other domestic policies......

He also implemented tariffs on Chinese goods during his last presidency that the Biden administration maintained. Trump offered subsidies for Texas’s agriculture sector at the time to help it weather the trade conflict with China, and Brooke Rollins, a Texan who is his pick for secretary of Agriculture, said she would support similar moves this time.

Still, if tariffs attract more U.S. manufacturing, the benefits will likely come much later than the immediate price hikes. Setting up factories and other elements of the supply chain requires planning and investment that can take years.

"These types of investments in factories and opening facilities, they don't happen overnight," Torres said. "We might see some that might happen during his term, but I see that most of this, if it happens, will happen after he leaves office."