The Impact of Trump Tariffs on Florida’s Commercial Construction Sector

Some are calling it a trade war, others a disaster for Florida’s construction industry. Here’s how things look today, and how construction firms can pivot to adapt.

Key Takeaways:

• Increased material costs mean higher operational expenses for commercial construction in Florida.
• This will lead to potential project delays and financing challenges.
• The tariffs may have broader implications for Florida’s economy.
• There are steps contractors can consider to remain flexible and adaptable.

All stakeholders in Florida’s commercial construction market have one thing on their minds: President Donald Trump’s recent imposition of tariffs on all imports from three major exporters, with higher rates for specific countries.

Trump tariffs and their wider ripples are poised to significantly affect Florida’s commercial construction sector, and potentially even the economy of the entire state. 

Here, we’ll take a closer look at how tariffs work, examining both the short-term and long-term ramifications that Florida’s construction industry must consider moving forward.

Buckle up, because there’s a ton of information.

Trump Tariffs as They Pertain to the Construction Industry as a Whole

A tariff is a governmental tax imposed on a good or service imported from another country. Tariffs set by the importing country reduce the amount of profit received by the exporting producers to an amount in line with the tariff’s percentage.

As a result, exporting countries often raise the price of their goods and services to counter tariff-related losses, with the knock-on effect of higher prices for consumers in the importing country. For businesses that rely on those imports, the cost of much of their operations and materials can increase substantially.

Canada, China, and Mexico are the targeted countries under the Trump Tariffs. That’s unwelcome news for Florida, which imports substantial amounts of cement from Mexico, which will have a 25% tariff imposed on all exports. 

Florida also imports 5% of its household appliances from there, which are vital components in residential builds.

Worse, there’s the chance that tariffs could reach 34.5% or higher on Canadian softwood lumber later this year. That’s a very bleak forecast, since Canada’s forests provide almost 25% of America’s supply of this key building material.

These simple examples alone are indicative of what’s facing commercial construction in Florida and of the broader economic impacts that may well follow. 

And one of the most significant ripples is lenders tightening their eligibility criteria for new construction projects.

How Trump Tariffs Complicate Construction Funding

The President’s decision hits home at a time when things were already financially challenging for Florida’s construction sector.

The usual stress of inflation, coupled with post-pandemic price rate hikes, has made materials and labor steadily more expensive for years. 

Those forces also caused financial lenders to become even more stringent about to whom and how they lend money, making it increasingly difficult for construction projects to find funds.

With Trump tariffs coming into play, it’s a financial triple whammy that’s leading developers to hesitate on starting new projects. Simultaneously, banks and other lenders are adjusting their underwriting models and qualification criteria because they’re viewing construction projects as bigger risks than ever.

The combined projects of Florida’s construction industry contributed over $97 billion to the state’s economy in 2024. Any negative impact on commercial construction in Florida could have a significant knock-on effect on the state’s economic health as a whole.

There’s one certainty in this shifting financial landscape: construction companies will have to stay informed and prepared to adjust their game plans for the foreseeable future.

How Construction Companies Might Adapt

There’s no telling when the impacts of the Trump tariffs will ease, so it’s wise for those with construction interests to treat it as a new normal. Flexibility is key, and being so may involve changes to a company’s typical approaches and quite probably some belt tightening.

One of the first areas builders should cultivate flexibility in is how they finance their projects, from traditional construction loans to more emergent sources like C-PACE.

While it’s good to have options, we must keep in mind that those lenders are still scrutinizing projects and prospects before providing any cash. Construction companies can try to counter this primarily by having a good track record and a history of compliant practice. 

Presenting a detailed budget for the project’s timeline and incorporating a cost-escalation strategy should material costs continue to rise are two more ways to potentially impress lenders.

Those combined steps can also be attractive to a construction company’s customers (who are usually considering multiple bids on a project). Offering guaranteed price contracts could help a contractor stand out from the crowd and win bids where competitors may be unable, or unwilling, to match them.

Another viable strategy—should funds allow it—is buying materials before they’re needed. This can create something of a stockpile against rising prices in the future. Of course, this may involve a significant outlay upfront, but some stakeholders may see this as a necessary sacrifice to buffer against the fiscal unpredictability of a tariff war.

The Vital Importance of an Experienced Construction Partner

Uncertain economic outlooks can also be offset by having a construction partner you can rely on. Not only does it give a business peace of mind, but a seasoned construction ally can also be an attractive prospect for lenders and customers alike.

As a full-service construction company, RPC General Contractors has been evolving since 1986 to better serve our clients, our construction partners, and our community.

Our own expertise spans the construction spectrum from the first design stages to construction management, budget management, documentation, and more, giving us the kind of experience and perspective that makes all the difference when every dollar counts.

What’s more, we’ve forged strong contractor relationships, so we know and trust the teams we work with. 

Reach out to us for a free consultation to discuss your project. Let us help you with stronger financial planning and more reliable execution.