Texas small business owners cite tariffs and shutdown ahead of Supreme Court hearing
Texas business owners say tariffs and the federal shutdown are raising costs and limiting access to loans as the Supreme Court prepares to hear a tariff challenge.
Texas small business owners say Trump-era tariffs and the federal government shutdown are raising costs and making it harder to get financing, as the U.S. Supreme Court prepares to hear oral arguments Wednesday in a legal challenge to the tariffs.
The dispute affects companies that import parts, packaging or raw materials, and owners who rely on federal loan programs. More than 230 Texas-based small business owners traveled to Washington, D.C., last week for the Goldman Sachs 10,000 Small Businesses Summit to speak with Texas lawmakers about tariff uncertainty and the shutdown.
What business owners said
Amber Ferrell-Steele, owner and founder of Timeless Spirits and Drinks in Iowa Colony, south of Houston, said her business depends on exporting vodka and rum and importing liquids and dry goods. She said tariffs have raised the cost of glass and packaging used in her products by 14% to 20%.
Ferrell-Steele also said anticipated tariffs have pushed some suppliers to raise prices before duties take effect. She described the budgeting environment as “all over the place” and “impossible.”
She said the shutdown has frozen new federal small business loan activity, and she pointed to a customer who could not close an SBA loan because the government is shut down.
Brandi Harleaux, CEO and second-generation owner of Houston-based South Post Oak Recycling Center, said her business depends on heavy machinery and replacement parts. She said some needed parts are not made locally, which raises shipping and material costs for equipment that can cost millions of dollars.
Harleaux also said the shutdown is driving up health insurance costs. She said her team needs affordable health care but that it is “so expensive.”
Why it matters
The comments show how tariff policy and a federal shutdown can affect small businesses beyond customs charges. For companies that sell, ship, repair or insure physical goods, price changes can spread through packaging, freight, machinery maintenance and financing.
The owners said lawmakers often praise small businesses, but they do not always match that rhetoric with action. Their concerns come as the Supreme Court prepares to hear the tariff challenge, which could affect how those duties are handled going forward.
Background
The source says the hearing is set for Wednesday, but it does not say what outcome the court may reach. The article also does not say how long the shutdown has lasted or when it may end.
The Goldman Sachs 10,000 Small Businesses Summit brought more than 230 Texas owners to Washington last week, where they pressed lawmakers on the effects of tariff uncertainty and the shutdown.
What happens next
The Supreme Court is scheduled to hear the tariff case Wednesday. Any change in the tariffs, or in the shutdown’s effect on federal programs, could affect the businesses described in the article.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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