Much is being made of President-elect Trump’s plans to levy steep tariffs against Canada, Mexico and China (for starters). His proposed import tax on goods ranges from 25 to 100 percent based on what he has said publicly. Certainly, Texas’ close ties to Mexico could cause some of us to feel financial strain, but where might Houstonians be most affected?
Here are four areas to consider.
Transportation
Gas prices are likely to be the first things to increase. While it probably won’t impact Houstonians quite as much as other parts of the country thanks to our close proximity to the energy industry, we will definitely see impacts. More critically, the cost of vehicles could go up rather dramatically given that many car parts are made in Mexico. Manufacturers feeling the sting of the tax will likely raise the cost of vehicles to compensate. This is with car prices already at all-time highs.
Don’t be surprised if eventually airplane travel is also affected thanks to the rising costs of fuel and parts made overseas. And because our airports are not primary hubs like Dallas or Atlanta, we already have fewer flight options, which pushes prices higher to begin with. And it might even trickle down to things like e-bikes, if you thought you might supplement your gas costs by cycling more. Most e-bikes and their parts are made in China.
Electronics and Appliances
It might take a bit longer to see the impacts, but everything from your laptop to your doorbell camera could see steep price increases the longer tariffs are in place. That is because the vast majority of electronic goods and appliances (parts in particular) are made and assembled in Mexico and China. Everything from washing machines to cell phones to light switches are likely to go up in price. Don’t be surprised if that trickles down to things like medical care with our massive medical center relying on many of these items to keep us healthy.
Home Goods & Apparel
The National Retail Foundation put out some pretty grim estimates for all kinds of consumer home goods and clothing.
Consumers would pay $13.9 billion to $24 billion more for apparel; $8.8 billion to $14.2 billion more for toys; $8.5 billion to $13.1 billion more for furniture; $6.4 billion to $10.9 billion more for household appliances; $6.4 billion to $10.7 billion more for footwear, and $2.2 billion to $3.9 billion more for travel goods.
Houstonians love their shopping. Hit the Galleria pretty much any day of the week to see for yourself. But that spending could take a significant hit if sneaker heads have to shell out 50 percent more for Air Jordans. And to make your travel plans even more complicated, best to think about a new suitcase sooner rather than later.
Food
Perhaps the most worrisome for those of us who live in Texas is the price hike that could be coming for some of our favorite foods from Mexico. Guacamole is on the chopping block thanks to limes and avocados, which are mostly grown south of the border. And that doesn’t even account for import tariffs on things like wine and beer, which are certain to cause prices to rise. The fact that Tex Mex is a staple of our diet in Houston and dining out is a massive part of our culture, these tariffs could be particularly hurtful to the Houston food scene from restaurants and workers to diners.
This article appears in Jan 1 – Dec 31, 2024.
