As the Trump administration’s across-the-board tariffs take effect, Texas businesses, manufacturers, farmers, and consumers are feeling the impacts. The state’s economy—heavily reliant on global trade—now faces rising production costs, disrupted supply chains, and heightened uncertainty across its energy, manufacturing, agriculture, and technology sectors. With Texas leading the nation in exports, the new tariffs threaten to ripple through every corner of the economy from oil fields and factories to farms and ports.

Tariff Impact on Texas: By the Numbers

Texas’s economy is deeply integrated with global markets. In 2023, the state exported $509 billion in goods, ranking 1st nationally and accounting for nearly 20% of total U.S. exports. These exports supported 3.6 million jobs across various sectors, including manufacturing, agriculture, energy, and technology.

• Energy: Texas is the nation’s leading energy producer, responsible for 43% of U.S. crude oil production and 27% of natural gas production. Energy exports, including crude oil, refined petroleum, and LNG, are highly sensitive to global trade flows. Tariffs on imported drilling equipment, pipelines, or refining components are raising costs for energy producers and could slow infrastructure development.
• Manufacturing: Manufacturing contributes over $292 billion to Texas’s economy and employs over 970,000 workers in the state. Texas is a top exporter of machinery, chemicals, and aerospace products. Tariffs on imported components—especially automotive and transportation equipment—can disrupt production and reduce competitiveness in global markets.
• Agriculture:Texas is the country’s 6th largest agricultural exporting state, shipping $8.5 billion in domestic agricultural exports abroad in 2022. The state is a top 5 producer of cotton (#1), beef and veal (#3), and other plant products (#4). Retaliatory tariffs from trading partners depress demand for Texas farm products and reduce prices for producers.
• Technology: Texas has become a major technology hub, with over 1.2 million tech workers and a rapidly growing semiconductor manufacturing base. The state exported $57.1 billion in computers and electronic products in 2024. Tariffs on chips, circuit boards, and manufacturing equipment threaten to slow expansion in this fast-growing sector.