South Texas Communities Face Tariff Threat
Decades of Trade Growth Have Transformed the South Texas Economy - Will It Continue?
FEATUREDTRADE 🌎POLICY
McAllen, TX — South Texas is bracing for the impact of new tariffs that threaten decades of economic progress for Texas border communities. Global trade has helped turn South Texas from one of the poorest regions in the United States to one of the fastest-growing. Now, tariffs could unravel decades of progress.
The Details:
Trade Growth: From 1990 to 2019, Texas border region employment surged 76%, from 660,000 to 1.2 million jobs, fueled by logistics, trucking, and manufacturing tied to Mexico trade.
Economic Gains: Incomes in Texas border counties rose 20% from 1990 to 2018, with poverty rates dropping from 36% to 23%, outpacing national trends.
City Budgets at Risk: Laredo relies on bridge tolls for $70 million (26% of revenue) of its $270 million general fund; Eagle Pass drew $18.2 million (33% of revenue) in 2023; Del Rio earned $8.9 million (12% of total revenue).
Nearshoring Hopes: Trade with Mexico promises better jobs and economic growth, but tariffs could derail this progress.
Why It Matters:
South Texas’s trade-driven growth has lifted communities, but tariffs could slash economic activity and municipal revenues, threatening jobs, essential services, and growth. Balancing national trade policies with local economic needs remains a delicate challenge.