Austin, Texas, October 18, 2025
News Summary
President Trump has announced a 100% tariff on Chinese products set to take effect on November 1, creating uncertainty for Texas businesses reliant on imports. Retailers and automotive dealers report significant price increases and shifts in consumer behavior as they adapt to imposed tariffs and supply chain disruptions. Analysts predict a potential drop in Texas’s GDP and job losses due to these tariffs, while businesses explore ways to adapt and expand despite challenges.
Austin, Texas. President Trump announced a 100% tariff on Chinese products to take effect on November 1. The Supreme Court will hear arguments on November 5 regarding the president’s authority on country-specific tariffs. Texas business owners are feeling the ongoing impact of existing tariffs.
Immediate impact and key developments
The announcement of a 100% tariff set for November 1 and the pending Supreme Court review scheduled for November 5 have created immediate uncertainty for Texas companies that rely on imported goods and components. Businesses report faster and larger cost increases from manufacturers, more frequent price changes, and slower deliveries of goods.
President Trump announced a 100% tariff on Chinese products to take effect on November 1.
The Supreme Court will hear arguments on November 5 regarding the president’s authority on country-specific tariffs.
Texas business owners are feeling the ongoing impact of existing tariffs.
How Texas firms are responding
Retailers, auto dealers, and technology suppliers in Texas report tangible changes to pricing, inventory and customer demand. Steve Harman, co-owner of MediaHead in Addison, Texas, reports substantial price increases from manufacturers since March 2025, with prices changing frequently. Harman stated they have seen price hikes at least twice since the tariffs were first imposed. Specific products affected include lighting and cameras, with the latter facing potential 100% tariffs.
Steve Harman, co-owner of MediaHead in Addison, Texas, reports substantial price increases from manufacturers since March 2025, with prices changing frequently.
Harman stated they have seen price hikes at least twice since the tariffs were first imposed.
Specific products affected include lighting and cameras, with the latter facing potential 100% tariffs.
Automotive dealers report shifting consumer behavior. Don Herring, CEO of Don Herring Mitsubishi in Irving, mentioned that the dealership is experiencing decreased sales of new cars compared to used cars, a reversal from the previous year. Herring also pointed out that the current rebates on new 2025 vehicles are smaller compared to those offered on 2024 models.
Don Herring, CEO of Don Herring Mitsubishi in Irving, mentioned that the dealership is experiencing decreased sales of new cars compared to used cars, a reversal from the previous year.
Herring also pointed out that the current rebates on new 2025 vehicles are smaller compared to those offered on 2024 models.
Supply chains are affected by both cost and timing. U.S. import costs have risen about 5%, contributing to increased inflation, according to Patrick Soleymani, associate dean at George Mason University. Delays in product delivery are also noted; products expected in days are now taking weeks. Some manufacturers are adjusting equipment availability and limiting rebates to cope with import taxes.
U.S. import costs have risen about 5%, contributing to increased inflation, according to Patrick Soleymani, associate dean at George Mason University.
Delays in product delivery are also noted; products expected in days are now taking weeks.
Some manufacturers are adjusting equipment availability and limiting rebates to cope with import taxes.
Economic stakes for Texas and the nation
Texas faces a complex mix of risk and resilience. Texas is the top exporting state in the U.S., moving approximately $455 billion in goods in the previous year. Analysts predict that the new tariffs could reduce Texas’s GDP by about 1.5%, potentially costing the state $47 billion and jeopardizing nearly 100,000 jobs. Tariffs could cost small businesses about $200 billion annually, according to Chamber figures.
Texas is the top exporting state in the U.S., moving approximately $455 billion in goods in the previous year.
Analysts predict that the new tariffs could reduce Texas’s GDP by about 1.5%, potentially costing the state $47 billion and jeopardizing nearly 100,000 jobs.
Tariffs could cost small businesses about $200 billion annually, according to Chamber figures.
Despite pressures, some Texas companies are expanding services and redeploying resources. Despite tariff challenges, Harman’s company is expanding its services. Glenn Hamer, CEO of the Texas Association of Business, acknowledged the difficulties but expressed optimism about Texas’s ability to adapt to ongoing trade disputes. Texas officials, like Governor Greg Abbott, view tariffs as a chance to reset global supply chains and encourage manufacturing growth.
Despite tariff challenges, Harman’s company is expanding its services.
Glenn Hamer, CEO of the Texas Association of Business, acknowledged the difficulties but expressed optimism about Texas’s ability to adapt to ongoing trade disputes.
Texas officials, like Governor Greg Abbott, view tariffs as a chance to reset global supply chains and encourage manufacturing growth.
At the same time, national business groups are pushing for relief. The U.S. Chamber of Commerce is actively lobbying for tariff relief to assist small businesses.
The U.S. Chamber of Commerce is actively lobbying for tariff relief to assist small businesses.
International investors note the role of foreign investment in Texas job creation. An EU ambassador highlighted Texas’s significant trading role, noting that EU investments have created 300,000 jobs in the state.
An EU ambassador highlighted Texas’s significant trading role, noting that EU investments have created 300,000 jobs in the state.
What to watch next
- November 1: implementation date for the 100% tariff on Chinese products.
- November 5: Supreme Court arguments over presidential authority on country-specific tariffs.
- Short-term: price volatility, delivery delays, and shifting consumer demand in Texas markets.
- Medium-term: economic modeling and analyst updates on projected state-level GDP and job impacts.
FAQ
What tariff was announced and when does it take effect?
President Trump announced a 100% tariff on Chinese products to take effect on November 1.
Is there a legal review of the tariff authority?
The Supreme Court will hear arguments on November 5 regarding the president’s authority on country-specific tariffs.
How are Texas businesses reporting effects from tariffs?
Texas business owners are feeling the ongoing impact of existing tariffs.
Are there specific Texas business owners reporting price changes?
Steve Harman, co-owner of MediaHead in Addison, Texas, reports substantial price increases from manufacturers since March 2025, with prices changing frequently.
Have price hikes been repeated since the tariffs began?
Harman stated they have seen price hikes at least twice since the tariffs were first imposed.
Which products are noted as affected?
Specific products affected include lighting and cameras, with the latter facing potential 100% tariffs.
How are car dealers being affected?
Don Herring, CEO of Don Herring Mitsubishi in Irving, mentioned that the dealership is experiencing decreased sales of new cars compared to used cars, a reversal from the previous year.
Have vehicle rebates changed?
Herring also pointed out that the current rebates on new 2025 vehicles are smaller compared to those offered on 2024 models.
Have import costs and inflation changed?
U.S. import costs have risen about 5%, contributing to increased inflation, according to Patrick Soleymani, associate dean at George Mason University.
What is Texas’s role in exports?
Texas is the top exporting state in the U.S., moving approximately $455 billion in goods in the previous year.
What are analysts predicting for Texas’s economy?
Analysts predict that the new tariffs could reduce Texas’s GDP by about 1.5%, potentially costing the state $47 billion and jeopardizing nearly 100,000 jobs.
Are small businesses at financial risk from tariffs?
Tariffs could cost small businesses about $200 billion annually, according to Chamber figures.
Are businesses changing operations in response?
Some manufacturers are adjusting equipment availability and limiting rebates to cope with import taxes.
Key facts and figures
| Feature | Detail |
|---|---|
| Tariff announced | President Trump announced a 100% tariff on Chinese products to take effect on November 1. |
| Legal review | The Supreme Court will hear arguments on November 5 regarding the president’s authority on country-specific tariffs. |
| Texas exports (previous year) | Texas is the top exporting state in the U.S., moving approximately $455 billion in goods in the previous year. |
| Projected Texas GDP impact | Analysts predict that the new tariffs could reduce Texas’s GDP by about 1.5%, potentially costing the state $47 billion and jeopardizing nearly 100,000 jobs. |
| U.S. import cost change | U.S. import costs have risen about 5%, contributing to increased inflation, according to Patrick Soleymani, associate dean at George Mason University. |
| Small business annual cost | Tariffs could cost small businesses about $200 billion annually, according to Chamber figures. |
| Job creation from EU investment in Texas | An EU ambassador highlighted Texas’s significant trading role, noting that EU investments have created 300,000 jobs in the state. |
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Additional Resources
- Spectrum Local News
- Politico Pro
- Star-Telegram
- Houston Chronicle
- Fox Business
- Wikipedia: Tariff
- Google Search: Impact of Tariffs
- Google Scholar: Tariffs Economic Impact
- Encyclopedia Britannica: Tariffs
- Google News: Trump Tariffs Impact
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