First, the good news: Manufacturing is up in Texas. That’s according to a new survey from the Federal Reserve of Dallas that tracks production and factory output month to month. In July, hiring up was up, shipments were up and demand stayed above average. Now the not so good news: Uncertainty is also up. That may have something to do with a little thing called tariffs. 

“If there is a state that is going to be impacted by trade relationships, it’s going to be Texas” said Chris Bryan, communications director for the Texas state comptroller. “We are the No. 1 exporting state going away by a pretty good margin.” 

Respondents from different manufacturing sectors in Texas were more than happy to tell the Dallas Fed what they are worried about. Take this from a primary metal manufacturer: “What will President Trump do next, and will it help or hurt?” Chemical manufacturers were even more direct with their feedback: “Chinese tariffs will have a large negative impact on business.” 

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