How Tariffs Affect Texas

Texas is heavily affected by the 2025-2026 tariff regime. The state's economy relies on exports of Petroleum, Electronics, Chemicals, all of which face retaliatory tariffs from trading partners. An estimated 380,000 jobs are at risk, and the average household is paying $1920 more per year due to higher import costs.

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For a family in Texas earning $75,000, tariffs add an estimated $1,920 to annual household spending — a 2.6% hidden tax on everyday goods.
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Impact Score

90/100

Severe

Per Household Cost

$1,920

per year

Jobs at Risk

380,000

Exports at Risk

$52.0B

See our methodology →

The Tariff Burden on Texas Families

Every household in Texas is paying an estimated $1920 more per year due to tariffs on imported goods. This manifests as higher prices on everyday purchases — groceries, clothing, electronics, vehicles, and home goods. The cost is invisible at the register but shows up in monthly budgets as a persistent, unexplained squeeze.

For a median-income household in Texas, this tariff burden represents roughly 3.0% of income — a meaningful hit to purchasing power that falls hardest on those who can least afford it.

Top Exports at Risk

Texas's economy depends on exporting Petroleum, Electronics, Chemicals to international markets. Retaliatory tariffs from trading partners — including China, Canada, the EU, and Mexico — are directly targeting these products, reducing demand and lowering prices for Texas producers.

Texas's Key Export Industries

Petroleum

Facing retaliatory tariffs

Electronics

Facing retaliatory tariffs

Chemicals

Facing retaliatory tariffs

Jobs at Risk

An estimated 380,000 jobs in Texas are directly threatened by tariffs and retaliatory trade measures. These are jobs in export-dependent industries, import-reliant businesses, and downstream sectors that depend on affordable inputs.

The job losses come in three waves:

  • Direct export losses: Workers in industries that export products now subject to retaliatory tariffs
  • Input cost increases: Manufacturers who depend on imported components and raw materials, now 10-54% more expensive
  • Consumer demand decline: Retailers and service businesses that suffer when consumer spending power drops

Retaliation Targets

Trading partners have specifically targeted Texas's key agricultural and industrial products with retaliatory tariffs. Products facing retaliation include:

  • Cotton — facing retaliatory tariffs of 10-25% from major trading partners
  • Petroleum — facing retaliatory tariffs of 10-25% from major trading partners
  • Beef — facing retaliatory tariffs of 10-25% from major trading partners

What $52.0B in Exports Means

Texas has approximately $52.0Bin annual exports at risk from tariffs and retaliation. To put that in perspective, that's roughly a significant share of the state's economic output.

Export revenue supports not just the workers who make the products, but entire communities — the restaurants where factory workers eat lunch, the schools funded by property taxes from employers, the small businesses that serve export industry employees.

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States with Similar Tariff Impact

Frequently Asked Questions About Tariffs in Texas

How much are tariffs costing Texas households?

The average Texas household is paying an estimated $1,920 more per year due to tariffs on imported goods, affecting everyday purchases like groceries, clothing, electronics, and vehicles.

How many jobs are at risk from tariffs in Texas?

An estimated 380,000 jobs in Texas are directly threatened by tariffs and retaliatory trade measures across export-dependent industries, import-reliant businesses, and downstream sectors.

What are Texas's top exports affected by tariffs?

Texas's key exports at risk include Petroleum, Electronics, Chemicals. These products face retaliatory tariffs from major trading partners including China, Canada, the EU, and Mexico.

How does Texas's tariff impact compare to other states?

Texas has an impact score of 90/100, which is among the highest in the nation. The state has $52.0B in exports at risk.

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