Floridians should brace for higher prices on everything from homes to groceries as a result of newly imposed federal tariffs, according to a report released Tuesday by Florida TaxWatch.
The report focuses on a 10 percent blanket tariff the federal government announced in April, along with steeper reciprocal tariffs on countries like China. While the policy is aimed at boosting American manufacturing and correcting trade imbalances, Florida TaxWatch points to a more immediate outcome: higher costs for consumers and businesses in one of the country’s most import-reliant states.
“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,” said Florida TaxWatch President and CEO Dominic M. Calabro.
Florida imported $117 billion in goods in 2024, making it the tenth-largest importer in the country. Electric machinery, vehicles, industrial equipment, seafood, and edible fruits and nuts accounted for a substantial portion of those imports. The report warns that price increases in these categories could quickly pass through to consumers, especially given the lack of in-state production capacity for many of the affected products.
In the construction industry, which relies heavily on imported raw materials, developers face steep cost increases due to tariffs on Canadian lumber and Mexican drywall components. Florida TaxWatch estimates the impact on construction materials could exceed $3 billion statewide, potentially adding $10,000 to the cost of a typical new home. That increase would exacerbate the state’s housing affordability challenges, particularly in high-growth urban markets where inventory remains constrained.
Automobile buyers in Florida are also expected to feel the effects. With over 850 franchised car dealerships and no major automobile manufacturing plants, the state’s retail auto sector is highly dependent on imported vehicles and components. Tariffs could raise the price of a new car by $6,000 to $7,000, according to the report, as manufacturers pass added costs along the supply chain.
Food prices are likely to rise as well. Florida households already spend an average of $287 per week on groceries, ranking fifth nationally. Tariffs on imported food, particularly seafood and produce, could push grocery bills higher by 10 to 15 percent. Seafood alone represented $3 billion in Florida imports in 2023, underscoring the significance of the category for both consumers and businesses in the state.
The citrus industry, already struggling due to disease and weather disruptions, may face further pressure from retaliatory tariffs imposed by Canada, one of the top destinations for Florida orange juice exports. Reduced international demand could further destabilize a sector that has experienced steady decline in recent years, diminishing revenue for growers and processors alike.
