A Texas Manufacturer Paid Over $1 Million in Tariffs — While Producing in the U.S.

In Missouri City, Texas, a manufacturing company with fewer than 50 employees is doing exactly what policymakers often say they want: producing goods in the United States.

Yet this year, the company has paid more than $1 million in additional tariffs.

The reason is straightforward. While final production happens domestically, some raw materials must be sourced overseas — inputs that simply aren’t available in the U.S. at the scale or specifications required.

As the company put it:

“I am a manufacturing company here, but I have to bring some raw materials from overseas, and I am paying tariffs for those as well. I produce here but pay tariffs. Like the president says, produce in the U.S. and you will not pay — but this is not the case.”

For this Texas manufacturer, tariffs aren’t discouraging offshoring. They are taxing domestic production itself. Every shipment of raw materials brings another tariff bill — costs that drain cash flow, squeeze margins, and limit the company’s ability to invest, expand, or hire.

For companies like this one, the issue isn’t whether they want to produce domestically. They already are. The question is how long they can keep doing so while absorbing tariff costs of this magnitude.

📢 If your small business has been directly affected by tariffs, consider sharing your experience through We Pay the Tariffs. These stories help show how tariffs are impacting U.S. manufacturers, workers, and investment decisions across the country.