Are Tariffs Impacting Texas Firms?

As part of its monthly Texas Manufacturing Outlook Survey, the Federal Reserve Bank of Dallas collected supplemental information from respondents on the impact of the growing tariff wars on Texas firms. While perceptions of the broader business conditions were positive in September 2018, “outlooks were less optimistic and uncertainty increased further,” Fed analysts noted about the state’s manufacturing outlook. When it came to the question about the net impact of tariffs announced and/or implemented by the U.S. and other countries, 45% of those surveyed indicated little or no impact, while 35% indicated a negative impact in the short term. However, when it comes to the long-term outlook, many more respondents (32%) were uncertain as to the impact, though the negative perception remained the same. On both surveys, a low percentage perceived the tariffs as positive.