The Potential Impacts of New Tariffs on Florida’s Economy

Florida Tariff Impact Report Cover

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.

As of 2022, the U.S. was the world's second largest importer. The U.S. imported goods worth $3.08 trillion in 2023. The two largest industries for imported goods are electronic products and transportation equipment, suggesting the price increase of these commodities will affect American consumers the most. 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.

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. When construction 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 - One of the top 10 import industries in Florida is seafood, due to high local demand. As of 2023, Florida imported seafood worth $3 billion. 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.

Impact on Florida Consumers

As the cost of production goes up for almost all commodities, the burden of this increase will fall on 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. An average Floridian's weekly grocery bill is expected to increase by 10 to 15 percent as a result of imposed tariffs.

Meet the Author:

Jui Shah
Jui Shah
Research Economist
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