'Scrambling to stay alive': Central Texas businesses impacted by Trump's 145% tariffs
AUSTIN (KXAN) — Businesses across the country are still grappling with the high tariffs on products coming in from China. Some in Central Texas are feeling the impacts as well.
On Wednesday, President Donald Trump raised the tariff on Chinese imports to a staggering 125%. That number was adjusted even higher on Thursday to 145% after the White House accounted for Trump’s previous 20% fentanyl tariffs.
‘Scrambling to stay alive’
Wexel Art in southwest Austin is one of the businesses struggling with the tariffs. They frame a variety of products like art work, records and scarves.
“We take in different scarves from our customers and then frame them in our signature shadow box style,” said Co-Founder and CEO Natasha McRee.
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Wexel Art said it makes magnet frames, shadow boxes, acrylic frames and framed art. (Photo: KXAN) -
Wexel Art said it makes magnet frames, shadow boxes, acrylic frames and framed art. (Photo: KXAN) -
Wexel Art said it makes magnet frames, shadow boxes, acrylic frames and framed art. (Photo: KXAN) -
Wexel Art said it makes magnet frames, shadow boxes, acrylic frames and framed art. (Photo: KXAN) -
Wexel Art said it makes magnet frames, shadow boxes, acrylic frames and framed art. (Photo: KXAN) -
Wexel Art said it makes magnet frames, shadow boxes, acrylic frames and framed art. (Photo: KXAN)
However, the cost to run this operation just went up dramatically.
“Our tariffs typically on a 40-foot container are $4,000 or $5,000. Now we’re staring down the gun of a barrel of $129,000.”
Natasha McRee, Wexel Art Co-Founder and CEO
The situation prompted the business to pause shipments from China.
“This is our 15-year anniversary, and we’re supposed to be celebrating. Instead, we are scrambling to stay alive, and we don’t know what every day is gonna bring,” said Co-Founder and Vice President Morgan Doherty.
McRee and Doherty said they started their business with products made in America.
“We went to our first trade show, and our retailers said, ‘Great product, fabulous design, but your prices are way too high. You need to move the manufacturing overseas,'” McRee said.
They are now looking for new suppliers locally, but they’re struggling to find the right cost, quality and volume that they need.
Still, they are trying to maintain a positive frame of mind through it all.
“The team that we have together is so strong and so powerful and so nimble that we’re going to get through this, but it’s going to be so hard,” McRee said.
‘Seeing new opportunities’
However, the tariffs are not bad for all Central Texas businesses. Made in America Manufacturing is seeing some benefits.
Owner and President Bradan Eudy said the company grew out of his garage into a facility in Buda.
“The name of the company actually comes from the American dream,” Eudy said. “The American dream is built on the fact that you can work hard enough to build anything that you want.”
They make different parts for companies, like SpaceX and others in aerospace, defense and the oil and gas industry.
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Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN) -
Made in America Manufacturing started back in 2013 with a single machine in Bradan Eudy’s garage and it’s now grown into a 62 person team. (Photo: KXAN)
“We are already seeing new opportunities. There’s a new customer of ours that’s bringing some work in from Canada and giving us the opportunity on.”
Bradan Eudy, Made in America Manufacturing Owner and President
Still, he acknowledged some shortfalls as well.
“Our tooling costs are coming up a little bit,” Eudy said. “I see both sides of it around us. You know, the neighboring business, it’s difficult on them, because some of their components they are bringing in from overseas, and it’s hitting them really hard.”
In the long run, Eudy said we’ll see more manufacturing businesses open.
“Now you’re giving new jobs to new people here, and you’re providing healthcare and 401(k)s, and then these people are going out and buying houses here, and then your realtors making a commission,” Eudy said. “Then your furniture store is getting furniture, and they’re buying a vehicle here. So over time, that’s what it should do.”
