DALLAS –
Small businesses in North Texas are currently navigating a landscape of uncertainty due to the widespread tariffs implemented by the Trump Administration. These tariffs have created significant challenges as businesses attempt to adjust their pricing models and maintain customer engagement despite rising costs.

A recently conducted survey by the Federal Reserve of Dallas indicates a noticeable slowdown in economic growth across Texas, leaving many local businesses on edge about the sustainability of their operations.

Concerns of Small Businesses Regarding Tariff Implications

Local Perspective on Tariffs:

Industry analysts note that nearly half of all supermarket goods are now subject to these newly imposed tariffs. Key items impacted include seafood, coffee, fruits, and alcoholic beverages. The ripple effect of these tariffs is being felt by local merchants, transforming their operational strategies.

At Scardello Artisan Cheese, located in the heart of Dallas’ Oak Lawn neighborhood, owner Rich Rogers is understandably anxious about future implications. A significant portion of his inventory, approximately 50% of the cheeses and about 70% of the wines he offers, are imported. These imports are now facing a troubling fate due to tariffs.

The implementation of a 20% tariff on goods from the European Union as well as a shocking 31% tariff on Swiss cheese is set to inevitably alter pricing structures. This has caused a lot of concern among small business owners who rely on these imports to satisfy their customer base.

What They’re Saying:

Rogers expresses, “Cheese is not inexpensive to begin with. Great cheese is not cheap, and so adding these tariffs on top of things and making it a little bit more expensive to buy, that’s definitely not what we want. The importer has to pay more; my distributor is charged more, and they will, in turn, pass those additional costs to me. Ultimately, we have to translate some of that expense onto our customers. It’s essential for the survival of our business.”

As the situation unfolds, Rogers mentions that he is attempting to manage challenges on a day-to-day basis. “We typically make our holiday orders in July for December deliveries. In years past, this was always a guessing game, but now it feels heightened. It’s quite a nerve-wracking ordeal,” he states. “I have a love for cheese, but there is only so much I can consume alone. I need my customers to appreciate it too.”

Insights from the Federal Reserve of Dallas

Dig Deeper:

In a revealing report issued by the Federal Reserve Bank of Dallas, business owners throughout Texas expressed their apprehensions about potential recessionary pressures even before the tariffs were enacted. The economic growth numbers reflected a slight dip below expectations during the first quarter of the year.

The overall outlook among companies has soured considerably as uncertainty has surged particularly in the manufacturing and service sectors, signaling potential challenges ahead for business sustainability.

Remarkably, Texas holds the title as the number one trading state in the entire nation, boasting over $850 billion in transactions for the previous year. This fact underscores the critical role tariffs play on a state level within the larger national context.

Senator Cruz’s Position on Tariffs

HOUSTON, TEXAS – AUGUST 6: Senator Ted Cruz engages with supporters during a law enforcement and public safety rally at King’s Bierhaus on August 6, 2024, in Houston. (Karen Warren/Houston Chronicle via Getty Images)

What They’re Saying:

In a recent interview with FOX News, U.S. Senator Ted Cruz (R-Texas) articulated his concerns regarding the tariffs. He remarked, “I think it is misguided to presume we will maintain high tariffs indefinitely. That approach does not align with good economic policy. Personally, I am not in favor of tariffs. They act as a tax on consumers. My hope is these tariffs are indeed short-term and serve a purpose of leveraging a reduction in tariffs worldwide.”