Expert explains why Texas could see biggest impact regarding sweeping tariffs announcement

HOUSTON, Texas (KTRK) -- The impacts of an escalating tariff war could affect Texas more than any other state. Our location along the Gulf Coast, energy sector dominance, and proximity to Mexico make us the top exporting state in the country.

Texas has been the number one exporting state for over two decades, generating more than $450 billion annually.

The University of Houston's undergraduate program director of Supply Chain and Logistics Technology, Margaret Kidd, joined Eyewitness News live.

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Kidd said the state gains the most from improved relationships with Mexico and Canada. Both countries were left out of the "Liberation Day" tariffs announced this week by President Trump.

She also said we could be in for a world of hurt if a full-blown trade war escalates, putting at risk exports, jobs, and consumers.

"What we have to be concerned about is consumer spending. We already have signs that consumers have slowed their spending. When you add tariffs onto pricing, you'll see expanding of slowness of consumers to buy a product. When that happens, manufacturing slows down, and maybe some workers need to be laid off," she said.

"At this point, there are a zillion models. Many are saying there's a 50/50 chance for a recession, and I would say that's concerning. This is a time as a consumer to be conservative with your resources," she continued.

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Kidd also said she's watching Texas industries like oil and gas, aerospace, and agriculture.

Those are Houston's major exports that could be impacted if other countries retaliate or look to establish new trade partnerships with competing countries.

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