Tarrant County businesses face export dilemma over Trump tariff threats

Tarrant County businesses face export dilemma over Trump tariff threats

Yesi Noyola, owner of North Richland Hills’ Kandi Queen Dulceria, took it as semisweet news that the president had delayed any planned tariffs on goods from Mexico. “I’m not sure yet, but I hope that’s right,” she said on Monday as news outlets reported that the administration would delay tariffs on Mexico in exchange for added military personnel on the U.S.-Mexico border. Kandi Queen Dulceria is a small shop that primarily sells candies and treats from Mexico, offering area residents a taste of home for many.Noyola had not been so sure over the weekend, when the Trump administration announced it was planning to place a 25% tariff on goods from Mexico. At the same time, the administration announced it would place 25% tariffs on goods from Canada and a 10% tariff on imports from China. On Monday, the administration announced it was delaying any new tariffs for at least 30 days. 
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But it is much more than small retailers sharing their concerns about the impact of tariffs on Texas’ largest trading partners, said Chris Wallace, president and CEO of the North Texas Commission, a nonprofit advocacy organization for the region. Texas is the No. 1 export state in the country, and that impacts companies small and large, including GM, Bell Textron and Lockheed Martin. “Our North Texas region makes up over one-third of the GDP (gross domestic product)  of our state, and much of that success is export dependent,” said Wallace. “We look forward to our leaders focusing on a solution that allows our economy to continue to thrive.” A candy shop hangs piñatas outside of their store inside El Mercado in La Gran Plaza in 2021. The candy shop sells Mexican candy which is usually spicy or sour. (Cristian ArguetaSoto | Fort Worth Report)In 2023, Texas exported a record $444.6 billion, making the state the largest exporter of goods among all states, according to the United States Trade Representative’s office. Mexico was the state’s largest market, with Texas exporting $129.5 billion in goods to its southern neighbor in 2023. Canada was the state’s second-largest trading partner, with $35.9 billion in goods exported to the Great White North in 2023. Canada was followed by the Netherlands at $26.6 billion and China at $26.5 billion. Exports accounted for 17.3% of the state’s gross domestic product in 2023. A candy shop hangs piñatas outside of their store inside El Mercado in La Gran Plaza in 2021. The candy shop sells Mexican candy which is usually spicy or sour. (Cristian ArguetaSoto | Fort Worth Report)The state’s energy industry benefited the most from the exports with $70 billion worth of petroleum and coal products leaving the state in 2023. Texas is also the country’s sixth-largest agricultural exporting state, shipping $8.5 billion in domestic agricultural exports abroad in 2022, the latest figures available. “It looks like it’s not going to happen, which is good,” Texas Agriculture Commissioner Sid Miller told the Report in a Monday interview. The administration wants to stop fentanyl and illegal immigrants from crossing the border and Mexico has agreed to help with that, Miller said. “It’s a good deal because the trade war didn’t happen and Mexico is working on those issues,” he said. “Trump wrote the book on making those kinds of deals.” Economist Ray Perryman of Waco-based The Perryman Group said in his weekly newsletter that tariffs could lead to inflation.  “Part of the cost increase will be passed along to consumers, leading to higher prices,” he said.  That’s something Kandi Queen Dulceria’s Noyola has already had to deal with. “Inflation hit us hard last year, and I didn’t really want to have to deal with that again,” she said. Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org. At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.

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