As President Trump orders new tariffs on imports from China, Mexico, and Canada, North Texas businesses are adjusting strategies to avoid rising costs. NBC 5’s Diana Zoga reports.
Previously paused, 25 percent tariffs on most goods from Mexico and Canada went into effect Tuesday. President Trump ordered an additional 10 percent tariff on Chinese imports on top of another 10 percent put in place last month. President Trump said tariffs aim to put pressure on Canada and Mexico to do more to address illegal immigration and fentanyl smuggling.
Read on for how some North Texas businesses have prepared for this possibility.
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WATCH HERESMALL BUSINESS WEIGHS OPTIONS
When talk turned to tariffs, Raissa Manrique-DeLara said her family’s business, Faelo Group, considered all options on the table. That includes ramping up orders from their factory in Mexico ahead of Tuesday. As of last Friday, Manrique-DeLara said two semi-trucks of goods were waiting in line to cross the U.S.-Mexico border.
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SIGN UP “Our factory was working 24/7,” said Manrique-DeLara. “We usually have shipments once a week or week and half. But because we want to hurry up because we don’t know what’s going to happen, we want two trailers in a row.”
Faelo Group builds furniture and décor at its factory in Mexico. Manrique-DeLara said the company brings the products to its warehouse in Dallas, where the company is based. Then it delivers to its customers, mainly restaurants, bars, hotels and lounges, across the U.S. The small business said it hasn’t changed its strategy yet, though it may to try to avoid price increases.
“Maybe we are going to bring the furniture not built, on pallets, so it can be cheaper. We’ve been thinking of maybe going to another country. We know we have factory there [in Mexico], we are still going to work there, but maybe we are going to Vietnam,” said Manrique-DeLara.
Manrique-DeLara said she’s focused on solutions for a business her father started more than two decades ago.
“We have to work with what we have. There’s no choice,” added Manrique-DeLara.
“I’m very proud of this and I’m thankful to God, but our dreams are bigger than this,” she added.
TEXAS TRADE
In Texas, the Federal Reserve Bank of Dallas said executives, responding to a business outlook survey, reported a dip in factory activity in February.
“Some of the business participants, particularly in manufacturing, are having a lot of questions about what to do or what kind of actions to take if tariffs get imposed on trading partners,” said Regional Economist Jesus Cañas.
Cañas said questions are amplified with the same goods traded during different stages of production. For example, a wire harness may be imported from Mexico for installation in a vehicle engine made in the U.S.
An NBC 5 analysis of international trade data from the U.S. Census Bureau shows top imports from China, Canada and Mexico to Texas in 2024 included nuclear reactors, machinery and parts. Followed by vehicles and parts and electric machinery, including sound and TV equipment.
Data analysts with insurance comparison website, Insurify, said consumers may see other impacts down the road. It is estimated that full coverage car insurance costs will increase annually by eight percent with tariffs versus five percent without.
“When you have tariffs, it costs more for auto parts,” Matt Brannon, Insurify data journalist, told our colleagues at NBC Connecticut Responds. “When you damage your car, get into an accident, insurance has to pay to cover that.”
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