Tariff Changes Shake Fort Worth Companies — Here’s How Local Firms Are Responding

Fort Worth businesses are grappling with the repercussions of recent tariff changes, leading to increased costs and strategic shifts. The uncertainty surrounding these tariffs has compelled local companies to reassess their operations and supply chains.

Pat Cockrum, owner of Pottorff, a Fort Worth-based manufacturer of metal louvers and dampers, has faced significant challenges due to fluctuating steel and aluminum prices. Despite sourcing primarily American-made materials, the company has encountered price spikes in paint and parts, exacerbated by new tariffs on imported metals. Cockrum emphasized that the prevailing uncertainty has softened business demand, particularly outside the data center sector. He remarked, “American ingenuity is phenomenal; it will outpace and out-compete anyone. We don’t need these props to be successful.”

Similarly, Stephen Fitzwater, co-founder of Modern Lantern, a Fort Worth company specializing in rechargeable battery-powered lamps, has struggled to find U.S. suppliers. The majority of their metal lamps are produced in China, making them vulnerable to the recent tariff hikes. Fitzwater noted, “They’re either really simple, or really high-end installations for large commercial projects. They wouldn’t get back to us.” The company is now considering pausing production on slower-selling items to maintain consistent pricing.

The automotive sector in Tarrant County is also bracing for the impact of a 25% tariff on imported cars and parts. While automakers and dealers have remained relatively quiet, the heightened economic uncertainty has led some businesses to postpone capital investments and hiring. Chris Wallace, president and CEO of the North Texas Commission, stated, “There’s no doubt that there’s heightened economic uncertainty in our region because of these tariffs.”

Retailers are not immune to these challenges. Companies like Tandy Leather and Fossil, which rely heavily on imported products, anticipate the need to increase retail prices due to the tariffs. Tandy Leather CEO Johan Hedberg expressed concern, saying, “If tariffs remain at the currently announced levels, this will necessarily require us to increase our retail prices and likely lead to unavoidable declines in our sales and profits.”

The construction industry is also feeling the pinch. North Texas builders have reported receiving notices from contractors about potential cost increases due to tariffs. Seth Bodine of the Dallas Business Journal highlighted that while lumber is exempt from tariffs, other essential materials like HVAC equipment and cabinet hinges are affected, leading to increased costs for builders.

In response to these challenges, some businesses are exploring automation and other cost-cutting measures to maintain profitability without passing costs onto consumers. However, the overarching sentiment among Fort Worth companies is one of uncertainty, as they navigate the evolving landscape of international trade policies.