With existing and news tariffs announced by the Trump administration, a new report by Florida TaxWatch looks at the potential impacts it will have on the state’s economy, the state’s economy, its businesses, and consumers.
On April 2nd, 2025, a universal 10 percent tariff on all countries was announced by the federal government, with a few countries facing additional reciprocal tariffs of up to 50 percent. A week after the announcement, due to intense volatility in the bond market, a 90-day suspension on the tariffs was announced, with the exception of a 145 percent tariff on certain Chinese goods.
Florida is the 10th largest importer in the U.S., with a total import value of $117 billion in 2024. The largest portion of imports are made in the vehicle, electronic, and industrial industries. In January 2025, Florida exported goods worth $6.1 billion and imported goods worth around $10 billion. Countries like Canada, Brazil, Mexico and China have been long-term partners for Florida in both import and export activities. After the U.S. announced its new tariffs, Canada and China have announced reciprocal tariffs which will negatively impact Florida’s economy.
Impact on Florida Businesses
Construction – The construction industry, although not in the top 10 industries of the state’s total imports, relies heavily on imports. According to a study by the National Association of Home Builders, 75 percent of the imported lumber used for construction comes from Canada, and a crucial component of drywall—gypsum—comes from Mexico. When these materials get hit with tariffs, costs in the construction industry are expected to increase by more than $3 billion.
Car dealerships – Florida is home to more than 850 franchised car dealerships but does not have even one large-scale automobile manufacturing plant. With a 25 percent tariff (if suspension is lifted), the cost of one car for the domestic producers is expected to increase by at least 15 percent.
Agriculture, fisheries – There’s a high demand for seafood in Florida. As of 2023, Florida imported seafood worth $3 billion. While it is uncertain how much of this stays within Florida, it does add to the local supply. Similarly, Florida exported seafood products worth $440 million.
Agriculture, citrus – Florida’s already struggling citrus industry will also bear the effects of the new tariffs. A large portion of Florida’s orange juice production is exported to Canada; however, the reciprocal tariffs Canada placed on U.S. imports are likely to negatively impact Florida’s citrus industry. This can reduce the demand for Florida’s orange juice outside of the U.S. and affect state revenue.
Impact on Florida Consumers
As the cost of production increases for almost all commodities, the burden of this rise will be passed on to Florida consumers. Higher construction costs can increase the price of a typical house built by Florida developers by $10,000. An increase in the cost of production in the automobile industry will lead to an increase in the price of a car, by at least $6,000 – $7,000.
Florida ranks fifth among the U.S. in grocery costs— amounting to an average of $287.27 per week. Fresh produce and fruits and nuts is one of the top 10 industries for Florida imports. An average Floridian’s weekly grocery bill is expected to increase by 10 to 15 percent as a result of imposed tariffs.
