Texas Legislators Could Search for Ways
to Ease Tariff Pain that Abbott Has Ignored Capitol Inside
February 2, 2025
Texas Republican lawmakers would be facing a novel challenge if they hope to find ways to mitigate the potential damage that Donald Trump could be inflicting on the Lone Star State's economy and residents with tariffs that hit its two largest trading partners.
As Texans brace for soaring prices on a wide range of goods like vehicles, food, energy, liquor, computers and other products, the Republicans who control the Legislature could find themselves helpless in a sticker shock crisis that economists foresee with tariffs on imports from Mexico, Canada and China.
But Texas legislators may not have Governor Greg Abbott in their corner for a counter-offensive aimed at easing some of the pain that the tariffs will cause. Abbott, who has a chance to explain his position during a State of the State speech early Sunday evening, has been all in on the Trump tariffs that were contained in an executive order that the president issued on Saturday.
A tariff is a tax on products that are manufactured in countries that are targeted. Trump imposed tariffs of 25 percent on Mexico and Canada while going easier on China with an effective tax of only 10 percent on goods made in the world's largest nation. Trump also limited the tariff on energy resources from Canada to 10 percent amid pleas for mercy from American natural gas companies that rely significantly on the northern neighbor.
The added costs for imports from the targeted countries will be passed along to consumers like they can expect from tax hikes businesses are forced to cover initially.
Trump contends that the tariffs are necessary to slow the flow of migrants and fentanyl into the U.S. as a result of added leverage that he says they will give him.
The potential economic distress that states like Texas and its residents suffer with spiking consumer prices would be collateral damage from the president's war on illegal immigration and fentanyl.
Texas Comptroller Glenn Hegar could feel compelled to revisit the revenue estimate for state government here as a consequence of the tariffs. That could have an adverse effect on a projected surplus of nearly $24 billion for the next two years.
But Abbott doesn't appear to be concerned about the tariffs' repercussions on the state that he leads. The Texas governor is using the tariffs as a stage to flex his muscle instead. Abbott issued a warning to Canadian Prime Minister Justin Trudeau on Sunday morning.
"Careful Trudeau," Abbott said in a post on X. "The Texas economy is larger than Canada’s. And we’re not afraid to use it."
Abbott served up the intimidating words in a repost of a message that claimed that the Canadian leader would "learn the definition of FAFO" if he followed through with a threat to retaliate against the tariffs with actions of his own aimed at red states. FAFO is a Gen X acronym that stands for "f--- around, find out" and has become popular with the right wing of the GOP.
more to come ...
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