FOR IMMEDIATE RELEASE: Tuesday, July 8, 2025
CONTACT: Christina Johnson, christina@on3pr.com, 850.391.5040
Tallahassee, Fla. – Today, Florida TaxWatch released a report: The Potential Impacts of New Tariffs on Florida’s Economy which aims to inform Florida taxpayers of the possible effect tariffs will have on 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 TaxWatch President and CEO Dominic M. Calabro said, “While the goal is to level the playing field for U.S. businesses and consumers by eliminating trade disparities, tariffs can have an impact on the national economy, inflation, employment, production pricing, and personal purchasing power. The changing consumer sentiment indicates that Floridians are being cautious about the long-term implications of these trade policies. While some industries may see short-term gains, the broader economic outlook remains uncertain.”
Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said, “While the tariffs aim to protect domestic industries and boost capital investment in the long-term, they pose some risks to the broader economy in the short-term. The new tariffs will likely exert pressure on Florida’s economy as consumers face higher prices for some products, small businesses encounter increased operational costs, and overall economic growth slows slightly. As this ever-evolving situation develops, it will be important to monitor these trends to assess the full impact on Florida’s economic landscape.”
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.
Moreover, uncertainty in policy changes often cause consumers to postpone investments and decrease unnecessary consumption. The burden of tariffs is felt by the population at all income levels, with consumer prices increasing and the purchasing power of an individual decreasing. The overall burden of a tax increase is usually split equally between the business and the consumer.
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 – As shown in Figure 2, 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. While it is uncertain how much of this stays within Florida, it does add to the local supply. In the same manner, Florida exported seafood products amounting to $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 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— 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.
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About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit www.floridataxwatch.org.
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