Ron DeSantis addresses a crowd while President Donald Trump watches at a rally in Tampa, Florida – Courtesy: Shutterstock – Image by jctabb
The globe reacted when the administration of President Donald Trump declared it would impose 25 percent tariffs on Canada and Mexico. Florida-based companies prepared for market effects, ranging from importers and exporters at Port Tampa Bay to builders in need of building supplies for continuing real estate developments.
Trump announced on Monday that 10 percent tariffs on Chinese imports will take effect while North American duties would be paused for a month. Florida-based businesses now have more time to plan and speculate before getting dragged into a possible trade war thanks to the postponement.
Steel executives from all over the world came to Water Street this week for the Tampa Steel Conference. As the tariff situation changed hourly, speakers tore up their notecards. Preparing for “Trump 2.0… when a single post on Truth Social could end up altering trade policy” was the focus of several conference presentations.
“Remain optimistic. Michael Shin, the chief supply chain officer at Trinity Rail, a Dallas-based business, assured everyone that everything would be alright. The audience, many of whom had previously witnessed tariffs in action, burst out laughing.
According to a federal analysis, steel and aluminum were the goods most heavily targeted by tariffs during Trump’s first term, increasing domestic steel production by 5 percent while more than doubling the prices of some products. In 2024, Port Tampa Bay handled about 350,000 tons of steel, more than half as much as the year before.
This time, a wider range of goods from China, Mexico, and Canada may be subject to taxes, ranging from vehicles and gasoline to vegetables and building supplies.
Here are some potential financial effects of this round of tariffs on Floridians.
Who foots the bill for tariffs?
One of the most common fallacies, according to Michael Coon, an associate professor of economics at the University of Tampa, is that tariffs increase the cost of commodities sent to the United States from particular nations.
It is actually a levy on American businesses and consumers.
“If we buy an iPhone or a laptop, the people making the iPhones and laptops are charging the same price to everybody in the world. We only have to pay to bring it into the country,” Coon said.
Many of the local enterprises who may have to pay higher tariffs on imported goods are at Port Tampa Bay, which processes more cargo tonnage than other Florida ports. Eleven million tons, or more than one-third, of Tampa’s cargo in 2021 came from or traveled to other nations. Mexico is the third-most popular export destination, while Canada is the country that delivers the most commodities into Tampa’s port.
According to spokesperson Lisa Wolf-Chason, the port does not bear the direct cost of import duties. When unloading incoming cargo, it does, however, collect wharfage costs. If tenants import fewer shiploads, the port may lose some of the money collected from those fees.
Limestone, a building material and fertilizer element, and petroleum are among the primary products passing through Port Tampa Bay. Nearly half of Florida’s population gets their fuel from Tampa’s port, according to Wolf-Chason.
Will gas cost me more? Food?
According to Patrick De Haan, a lead analyst at the fuel tracking website GasBuddy, gas prices may increase in northern states that rely on Canadian crude oil.
The majority of the petroleum used at Port Tampa Bay comes from refineries located in Texas. According to De Haan, tariffs would not affect that domestic supply chain, shielding Floridians from significant price rises.
However, he advised customers to watch for seasonal price spikes. As production shifts from winter to summer and more Americans drive during the warmer months, gas prices usually reach their highest point in April.
It might be more difficult for Floridians to avoid rising auto prices. The tariffs will affect nearly all U.S. automakers, according to a report by the automobile industry called S&P Global Mobility.
The majority of automakers import between 20% and 60% of their vehicles from Mexico and Canada. According to S&P Global, the majority of those higher production costs—roughly $6,250 on average—will probably be passed on to customers across the country.
Given that the United States imports a large portion of its agricultural products and alcoholic beverages from Mexico, Coon said that grocery stores would probably be among the first to see price increases.
The building sector is also preparing for potential consequences.
According to a statement from Carl Harris, chairman of the National Association of Homebuilders, “more than 70 percent of the imports of two essential materials that home builders rely on — softwood lumber and gypsum (used for drywall) — come from Canada and Mexico, respectively.”
Canadian lumber is already subject to a 14.5 percent levy.
The local homebuilder Homes by WestBay’s president and CEO, Willy Nunn, stated that he is most worried about businesses making rash purchases in anticipation of possible tariffs.
“That might result in shortages of some materials,” he stated. Even in the absence of a tariff, prices may rise due to increased demand.
Will there be opposition?
There is a chance that other nations will target the United States with retaliation tariffs. These are frequently useful for focusing on particular sectors. For example, the European Union levied a 25 percent duty on American whiskey during President Trump’s previous administration.
Coon remarked, “What if there was a retaliatory tariff on something like citrus?” “Florida may be disproportionately affected by that.”
Aircraft and aerospace items are another significant Florida exporting sector that may be impacted by retaliatory tariffs.
The Greater Fort Lauderdale Alliance estimates that in 2023, the state’s export revenue was $10.6 billion. The Aerospace Industries Association said in a statement that it hoped the Trump administration would support industry protection.
The majority of Florida’s business executives are awaiting the results of the next 30 days. The effects of the tariffs on the economy might not be felt for months.
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Melissa’s career in writing started more than 20 years ago. Today, she lives in South Florida with her husband and two boys.
