San Antonio businesses, consumers will be hit especially hard by Trump tariffs, congressman warns

San Antonio will experience outsized pain from President Trump’s announcement of the largest increase in tariffs in the nation’s history, U.S. Rep. Joaquin Castro warned Wednesday afternoon.

The San Antonio Democrat said Trump’s tariffs — couched by the president as a “Declaration of Economic Independence” — will damage both the Alamo City economy, which is heavily reliant on international trade, and local families, especially those already struggling to make ends meet.

“Texans do not want a reckless tariff war. President Trump said he ‘couldn’t care less’ about higher prices. But these tariffs will lead to the biggest tax increase on everyday Texans in decades, and Republican leaders are refusing to stand against it,” Castro said on a call with reporters. “Texans will feel the adverse effects of this trade war in their jobs, taxes and inflation on a daily basis. This is especially true for San Antonio.”

The Alamo City is a significant international trade hub, meaning Trump’s tariffs and other countries’ reciprocal taxes on U.S. goods would slash revenues of local companies, Castro said. The congressman said he’s already fielded calls from local business owners and workers fearful about the impact of a pending trade war.

Further, a new study from the Canadian Chamber of Commerce identified San Antonio as the U.S. metro facing the most damage from Trump’s tariffs on the nation’s northern neighbor. Nearly half of San Antonio exports — $6 billion in goods, from trucks to farm equipment to aircraft — go to the Canadian market.

Beyond the potential for lost revenue and layoffs, economists caution that tariffs will raise prices for U.S. consumers, just as they did during the first Trump administration.

Castro said those price increases will be exceptionally painful for Alamo City consumers, many of whom are already struggling to cover basic expenses. Roughly 250,000 San Antonio residents live below the poverty line, and almost half either can’t cover basic expenses or are one financial emergency away from not being able to afford necessities, according to a 2024 city report.

“We have a very working class city, and there are a lot of hardworking people in this city, but there aren’t a ton of people with extra money every month in their bank accounts,” the congressman said. “A lot of people live paycheck to paycheck, so when prices go up, people really feel it. These changes are already hurting people, and it’s going to hurt more.”

Additionally, Castro called out Texas Gov. Greg Abbott for throwing his support behind Trump’s tariffs despite the damage they’re likely to inflict on the state’s residents.

During a February interview with CBS News, Abbott said he supported Trump’s tariffs because they would lead to a “more secure border.” The Republican governor even taunted Canada’s leadership in a tweet when the United States’ northern neighbor threatened to retaliate against Trump’s trade penalties.

“Careful Trudeau, the Texas economy is larger than Canada’s and we’re not afraid to use it,” Abbott said.

“San Antonio is a strategic trade hub, and trade and exports underpin countless jobs in Texas,” Castro said. “Gov. Abbott’s support for these massive tariffs threaten Texas businesses and the many people they employ. Texas desperately needs our Governor to demonstrate independence and a willingness to do what’s best for the people of Texas.”

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This article appears in Apr 2-15, 2025.