How U.S. Tariff Policies are Impacting Florida

“Tariffs”.  It’s a word that seems to be in everyday conversations lately, by politicians, in homes, offices, and businesses across the United States.  With all the talk of tariffs, you may have wondered if tariffs have had an impact on the Florida economy and consumers.  Let’s break it down and take a closer look.

What Tariffs Were Imposed in 2025* 

• April 2025: the U.S. government imposed a universal 10% “reciprocal tariff” on imports from all countries that had not had tariffs imposed on them before that date. 

• A “fentanyl tariff” was imposed on specific nations including China. 

• Currently, many goods from China are now subject to a total of 20% in tariffs. 

• Tariffs on steel and aluminum were doubled from 25% to 50% as of June 4, 2025.  In addition, new tariffs were added on June 12, 2025, on household appliances such as dishwashers, and refrigerators. 

• Effective August 1, 2025, the U.S. increased tariffs by 10% from 25% on many Canadian exports. An exception was made for goods that qualify under the USMCA agreement. 

• Higher tariffs of 15%-50% have been imposed on specific countries including Brazil, India, Japan, South Korea, South Africa, Vietnam and Canada. 

• Higher tariffs were imposed on specific products including: 25% on heavy-duty trucks and automobiles (some U.S. content exemptions.  100% tariff on branded/patented pharmaceuticals made outside the United States.  100% tariff on electric vehicles from China beginning in September 2024.  Up to 50% tariffs on solar cells, semi-conductors, steel, copper, aluminum, cabinetry and some furniture. 

• For non-USMCA Mexican imports, a 30% tariff rate was imposed August 1, 2025. Certain sectors including steel, aluminum, and copper received 50% tariffs and automobiles received a 25% tariff. 

• Initially, a 25% reciprocal tariff was imposed.  This was followed by a July 2025 trade deal which established a 15% tariff on South Korean goods from August 1, 2025. 

• With respect to China, the original baseline tariff of 10% plus the 20% fentanyl tariff was increased received a reprieve.  China temporarily received a reduction in tariffs to 10% on U.S. goods.  This deal expires on November 9, 2025. 

• The U.S. has specific arrangements with Mexico, the EU, and Japan which reduce planned increases in tariffs in exchange for major investments or special concessions. 

*Please note that this may not be a complete list of tariffs and is subject to change by the U.S. government. 

Retaliatory Tariffs 

• Retaliatory tariffs have been imposed by U.S. trading partners, namely Canada, Mexico, and China on goods exported by the U.S. including citrus, seafood, agricultural produce, and manufactured goods.  

• China retaliated by imposing a 34% tariff on all U.S. goods in April 2025, then increased the rate first to 84% then to 125%.  This action was in response to U.S. increases in tariffs on Chinese imports. 

• The European Union reinstated tariffs on €4.5 billion worth of U.S. imports.  These goods were primarily boats, motorbikes, and bourbon.  An additional €18 billion of tariffs was planned for U.S. imports during negotiations.  EU tariff rates mirrored major U.S. exports to Europe. 

• Canada indicated its plans to reimposed retaliatory tariffs on specific goods to match U.S. levels.  As USMCA goods were exempted as of September 2025, the plan was not executed. 

• Additionally, throughout Asia, there have been reports of protective measures and retaliatory tariff imposition, specifically by South Korea and Vietnam.  Instead, South Korea initially indicated its preference for negotiation instead of imposing retaliatory tariffs. 
  

  

How Florida Has Been Impacted by 2025 Tariffs 

As of 2024, Florida has commercial ties and experience exporting to 223 countries. Florida’s major trading partners in 2025 included Brazil, Mexico, Canada, Europe, primarily Italy and France, as well as countries across Asia.  With a $1.7 trillion economy, Florida’s largest export categories include transportation equipment, automobiles, yachts, civilian aircraft and parts, agriculture, manufactured goods as well as pharmaceuticals. 

As the 10th largest importer in the United States, Florida imports totaled approximately $117 billion in 2024.  The largest sector of imports involves goods made in the vehicle, electronic, and industrial industries.  Canada, Brazil, Mexico, and China have been long term partners for Florida in both import and export activities.  Reciprocal tariffs were imposed by Canada and China after the U.S. announced new tariffs and this has negatively impacted Florida’s economy. 

With ports around the state, Florida experiences significant port activity involving both imports and exports.  Many Florida businesses are reliant on imported goods or inputs needed to finish goods they have in production.  When tariffs increase input costs, margins decrease. 

With its global trade connections, Florida supply chains closely linked internationally (especially Asia, Latin American and the Caribbean) are at increased risk, uncertainty, and cost disruptions. 

Florida Construction Industry 

The Florida construction industry relies significantly on imported goods.  When the U.S. imposed tariffs, the construction industry anticipated cost increases in excess of $3 billion.  Critical materials are subject to U.S. tariffs.  For example, 75 percent of imported lumber used for construction originates from Canada.  This is also true of gypsum, an essential component of drywall.  Gypsum is imported into the United States from Mexico. 

Florida Seafood and Agriculture Industries 

Seafood is in high demand in Florida. Approximately $3 billion of seafood goods were imported into Florida in 2023.  It is uncertain how much of these goods remain within Florida, adding to the local supply.   

A significant amount of Florida’s production of orange juice is exported to Canada.  The citrus industry is already struggling and the reciprocal tariffs placed on the U.S. by Canada seems likely to negatively affect the Florida citrus industry, potentially reducing outside demand and state revenue. 

• The Florida sectors most impacted by tariffs are construction, agriculture (particularly seafood and citrus), automobile dealerships, real estate, electronics, and manufacturing. 

• The rising prices of goods is part of the reason for a slowdown in trade through Florida’s seaports.  This threatens Florida port and transportation-related jobs as well as continued economic activity. 

• Sectors involving clothing and textiles have been disproportionately affected. 

  
  

• Food prices have also been disproportionately affected, increasing the average Floridian’s weekly grocery cost by 10-15% due to imposed tariffs.  It is noteworthy that this rate of increase is one of the highest in the country.  

  
  

• Motor vehicle tariffs have added the equivalent of an extra $4000-$7000 to the price of an average 2024 new car. 

• The manufacturing base in Florida is reliant on imported raw materials, notably steel and aluminum from China.  Shipment costs have increased tenfold at times due to sudden tariff increases. 

• Florida aerospace companies Boeing and Lockheed Martin have reported higher production costs due to increasing aluminum prices.  This has increased manufacturing cost of aerospace components. 

• Although smaller to mid-sized manufacturers have tried to absorb increased costs, most have found it necessary to pass along costs to consumers.  In addition, some manufacturers have been forced to reduce their operations. 

• Florida real estate projects which had been thriving in recent years, are now experiencing higher material costs.  This has translated into increased overhead for real estate developers and higher costs for buyers. 

Conclusion 

In general, tariffs have produced a negative impact on the Florida job market and overall state economy.  Consumer prices have increased.  Key sectors including manufacturing, construction, and export-oriented industries have suffered job losses.  

The imposition of tariffs has created uncertainty for the business community as well as for consumers. Company growth has stalled and both consumers and businesses are more likely to suspend making major buying decisions due to this uncertainty. 

In the short term, tariffs impact lower income households as a share of income more than those at the top.  Over time, there is more uncertainty about the severity of impact on consumer households.  This is because the impact of tariffs tends to become more evenly distributed across income levels over time.