(The Center Square) – A report released on Tuesday says Florida consumers could see big impacts from tariffs levied on imports by President Donald Trump’s administration.
According to the report by the nonprofit group Florida TaxWatch, the price of a newly-constructed home in Florida could increase by $10,000. Floridians buying new cars might pay $6,000 to $7,000 more for their vehicle and the average weekly grocery bill could increase by 10% to 15%.
Imports are critical to Florida’s economy. The state is the 10th largest importer in the U.S. with a value of $117 billion in 2024. The biggest imports are in the vehicle, electronic, and industrial industries.
In January, Florida exported $6.1 billion and imported goods worth around $10 billion, with countries such as Canada, Brazil, Mexico and China as long-term trade partners for Florida.
The report also says reciprocal tariffs levied by China and Canada will negatively impact Florida’s economy.
“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,” Florida TaxWatch president and CEO Dominic Calabro said. “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.”
Tariffs are often called a tax because imported products generate a fee to be paid to the federal government. For example, if the U.S. has a tariff rate of 25% with another country, an American company pays to the U.S. government $250 on $1,000 worth of goods from that country.
The report predicts the state’s construction industry, which is heavily reliant on imports, will have its costs increase by more than $3 billion.
Florida is also home to 850 franchised car dealerships. The report says the cost of one car for domestic producers could increase by 15%.
The state’s citrus industry, already wracked by disease and weather, could take another hit as a large portion of its orange juice production is exported to Canada.
The Trump administration announced a universal 10% tariff on all imports, with a few countries facing additional levies up to 50%. A week after the announcement, instability in the bond markets forced the administration to pause the tariffs for 90 days, a period coming to an end this week.
Trump has said he’s going to postpone reciprocal tariffs until Aug. 1.
