23-04-2025
- Automotive
- Business Journals
North Texas manufacturing executives share sentiments on tariffs
While tariffs continue to be the talk of the town, executives from various industries shared their sentiments in the Dallas Fed's Texas Manufacturing Outlook.
Dallas-Fort Worth and Texas had an overall mix of both positive and negative reactions to tariffs, according to the Fed survey, which was released in March. With the looming uncertainty of costly imported goods and equipment among manufacturers, some companies have planned ahead by stockpiling inventory in preparation for the Trump trade war.
The automotive sector was one of the many other industries that were hit with tariffs after President Donald Trump put a 25% levy on imported goods from Canada and Mexico. Manufacturers including major companies such as Toyota North America and General Motors – a large SUV assembly plant in Arlington – both trade from these countries, which raises the concerns regarding day-to-day operations.
Arlington Mayor Jim Ross told WFAA that tariffs could lead to a higher cost in production and 'drive away' customers and roll back on manufacturing production.
Ryan Robinson, president and co-owner of Irving-based Signal Metals Industries Inc., added in an emailed statement that he doesn't believe that tariffs are 'inherently good' and that it wouldn't ultimately strengthen the U.S. economy.
Nearly 40% of Signal Metal Industries' revenue comes from domestic steel-making. Robinson said that steel-making companies are in favor of tariffs, as they believe that could put a stop in foreign steel makers from dumping steel in the U.S. He also added that, 'when [the] domestic steel-making industry is doing well, our business tends to do well.'
Although Signal Metals Industries buys a small amount of finished and semi-finished steel products from China, Robinson said that they've decided to pause and cancel orders from its longtime supplier in China, as the company pursues to source from other countries with "small" tariffs on U.S. products.
In addition, Brendon Quick, president of Western Industries Corporation, gave an emailed statement to Dallas Business Journal that the company won't see an increase in its operational expense due to any tariffs with Mexico since the company is a part of the IMMEX program, which allows the company to freely transport its fabrication into the country without paying tariffs.
"... We won't see an increase in operational expense due to any tariffs with Mexico, but indirectly, our customers may see a decrease in their sales to U.S. customers and this will manifest itself with a reduction in revenues for us potentially in the months to come."
Meanwhile, the restaurant industry is also facing heat from tariffs being raised to 145% on products that are imported from China. The aftermath of the Covid-19 pandemic continues to put pressures onto restaurants as they continue to see an increase in labor shortages, higher menu prices and ingredients.
Sid Patel, franchisee of The Brass Tap, told the Business Journals that he plans to increase beer sales by 20%, as his inventory consists of gloves and packaging materials that have now become more costly after the tariffs were put into place on all Chinese products. The Brass Tap relies on raw materials like aluminum, grain and certain liquors which could impact the day-to-day operations, Patel said to the Business Journals.
While the 90-day pause on reciprocal tariffs have left some wiggle room for companies to focus on stocking up on inventory, the nature of tariffs and the uncertainties around the economy will be on the forefront of the minds of many businesses in the upcoming months.
Manufacturing companies in North Texas
Local employment
Rank Prior Rank Company
1
1
Lockheed Martin
2
2
Texas Instruments
3
3
General Motors Arlington Assembly View this list
