From Food to Cars: Texas Markets Struggle Amid Tariff Concerns

Even before President Trump’s administration announces its latest round of tariffs, industries across the U.S. are feeling the pressure. In the food industry, the prices of staples like limes, avocados, and coffee are climbing as farmers and suppliers brace for changes in import costs. Meanwhile, auto dealers are facing tough decisions, with a proposed 25% tariff on imported vehicles threatening to push prices even higher for consumers.

Before any official announcement, the food supply chain is experiencing noticeable price hikes. Suppliers are reporting increased costs for staple goods like limes, avocados, and coffee. At Chef’s Produce, a supplier for restaurants and grocers in Texas, limes have jumped nearly 20% in price since January, rising from $36 to $43 per case. Avocados have also seen an unexpected spike, going against their usual seasonal trend of dropping in price after the Super Bowl, as reported by The Dallas Morning News.

The auto industry is another sector watching the tariff situation closely, particularly as a 25% tariff on imported vehicles looms. Nearly half of the cars sold in the U.S. come from abroad, meaning consumers could soon see higher prices at dealerships. 

Mitsubishi, which imports all its vehicles from Japan, has already warned dealers that prices will need to be adjusted if the tariffs go through. Meanwhile, independent dealerships face an additional burden, as rising costs for parts and vehicle reconditioning add to their financial strain.

Beyond food and automobiles, broader economic indicators are also flashing warning signs. A recent report from the Federal Reserve Bank of Dallas revealed a dip in retail sales activity in March, with businesses citing tariffs as a major concern, and with an outlook remaining negative, with the company outlook index slipping to -4.9 and uncertainty increasing. 

Another report published by the Federal Reserve Bank of Dallas on December 31, 2025 signaled that 45% of households reported being highly stressed by rising prices in Q3 2024, only slightly down from 47% in Q3 2022. Similarly, high concern about future inflation remained at 57%, compared to 61% in 2022. Texas continues to be among the most inflation-stressed states, ranking 8th for inflation stress and 15th for inflation concern.

Household income is the primary determinant of inflation stress, with lower-income households facing the most pressure. These households experience inflation more acutely due to the types of goods they purchase and the challenges in affording basic expenses. Additionally, indicators of financial hardship—such as difficulty paying expenses, food insufficiency, and rent arrears—have seen little improvement since 2022. As a result, while overall inflation rates have declined, the burden on consumers has remained significant.

“As companies anticipate which materials may be affected and to what extent, many have rushed to secure supplies from sources less likely to be hit with fees,” said Travis Tokar, a professor of supply chain management at Texas Christian University. “This surge in demand has driven up prices and, in some cases, created shortages.”

While details remain unclear, businesses across the country are already making moves to mitigate potential fallout. For now, industry leaders are left waiting for clarity.