Full Breakdown
Impact of Tariffs and Government Shutdown on Texas Small Businesses
11/5/2025, 5:03:32 AM
Legal Challenge to Tariffs
The U.S. Supreme Court is set to hear oral arguments regarding President Donald Trump's tariffs, which have significantly affected small businesses in Texas. Over 230 Texas small business owners recently traveled to Washington D.C. to express their concerns about the uncertainty surrounding these tariffs and the ongoing federal government shutdown, which they claim is increasing their operational costs. Amber Ferrell-Steele, owner of Timeless Spirits and Drinks, reported that tariffs have raised her costs for glass and packaging by 14% to 20%. She noted that the anticipation of future tariffs has led to preemptive price increases, complicating budgeting efforts.
Consequences of the Government Shutdown
The government shutdown has further exacerbated the challenges faced by small businesses. Ferrell-Steele highlighted that the freeze on new federal small business loans has restricted access to capital, impacting her business and her customers. Similarly, Brandi Harleaux, CEO of South Post Oak Recycling Center, indicated that her business is struggling with increased costs for machinery maintenance due to shipping delays caused by tariffs. She also mentioned rising health insurance costs linked to the shutdown, which complicates her ability to provide affordable healthcare for her employees.
Min Lee, a prospective small business owner in Katy, Texas, is facing delays in opening her frozen yogurt shop due to the inability to secure a Small Business Administration (SBA) loan amidst the shutdown. Lee expressed her frustration, stating that without the loan, she cannot pay contractors, delaying her plans to open by spring.
Criticism of Legislative Actions
Both Ferrell-Steele and Harleaux criticized lawmakers for their rhetoric praising small businesses while failing to take meaningful action to support them. Ferrell-Steele remarked, “If they’re going to continue to say that small businesses are the framework and the fabric of our country, well then you’ve got to help put that fabric together.” This sentiment reflects a broader frustration among small business owners regarding the disconnect between political promises and tangible support.
Broader Implications and Future Considerations
The ongoing challenges faced by Texas small businesses due to tariffs and the government shutdown highlight the need for legislative action that aligns with the needs of the business community. As the Supreme Court prepares to hear the tariff case, the outcomes could have lasting implications for small businesses across the state. Additionally, the potential for further delays in government operations raises concerns about the sustainability of small businesses that rely on federal support.
Verbatim Quotes
- “It’s been really all over the place, and kind of one of those impossible pieces to control as far as budgeting goes,” — Amber Ferrell-Steele, Owner, Timeless Spirits and Drinks
- “Believe it or not, even if the equipment is made here — and some of it is made outside of the country — the parts that’s needed to maintain it and keep this million-dollar equipment is not all made here locally,” — Brandi Harleaux, CEO, South Post Oak Recycling Center
- “If I don’t get the loan, I don’t have the money to pay the general contractors for construction,” — Min Lee, Prospective Owner, 16 Handles
The situation remains fluid, with small business owners advocating for more robust support from lawmakers to navigate the challenges posed by tariffs and government operations.
