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In Navigating Tariffs, Florida Businesses Have Options

As a major hub for imports and exports, shipping, tourism, and other industries vulnerable to the winds of global trade policy, Florida businesses in particular are finding themselves uniquely exposed to the impact of tariffs.

August 2025 | By Mike Walker and Jeffrey Beisler-Snell, Ph.D.

The effect of tariffs on Florida’s business community is multifaceted. For businesses that rely heavily on imported raw materials or finished goods, tariffs could translate directly into increased costs. For instance, the construction sector, a vital part of Florida's booming economy, could see significant price increases on frequently imported materials like steel, aluminum, lumber, fixtures, and electrical components. A tariffrelated surge in input costs would have a detrimental effect on profit margins, potentially translating into project cancellations or delays and higher prices for consumers, particularly in high-demand markets like Miami, Tampa and Orlando.

Florida's diverse retail and hospitality sectors, which import a wide array of goods from around the world, are also feeling the pinch. Restaurants importing specific ingredients; coffee shops sourcing specialty beans; and businesses selling imported consumer goods like apparel or electronics face higher procurement costs. This could result in increased prices for consumers and potentially dampened demand.

On the export side of the equation, businesses are grappling with retaliatory tariffs imposed by other nations. Florida is a significant exporter of goods, including computer and electronic products, transportation equipment, chemicals, machinery, and agricultural products like citrus and soybeans. When these goods become more expensive for foreign buyers due to tariffs, their competitiveness in global markets diminishes, potentially leading to reduced sales and revenue for Florida-based companies. Port operations, vital to Florida's trade flow, are also affected, with potential shipping delays and rising costs impacting the overall efficiency of global trade.

For the time being, Florida business owners appear to be in a wait-and-see mode — a wise strategy since tariff policies seem to change almost daily. If anything, Florida business owners are behaving more cautiously in areas like sourcing and inventory management, but we have yet to see any drastic mass action by Florida businesses in response to tariffs.

To that end, there are some preliminary steps that businesses in the Sunshine State can take, even in these early stages of a shift in global trade policy:

Working Capital Modeling: Not understanding the complicated and ever-changing tariff rules is completely excusable. It can also be extremely costly. For example, if a business is hit with an unexpected duty that eats into working capital, it can negatively impact cash flow and other areas of the balance sheet. Synovus’ experienced international banking team and treasury management consultants work with clients throughout the state to assess their overall working capital and build models that predict how tariffs and other forces could impact profitability and operational stability.

FX and Multicurrency Accounts (MCAs): Savvy use of foreign exchange and MCAs is another approach companies can employ to offset cost increases due to tariffs. Multicurrency accounts, for example, can be used as a tool to hedge against currency fluctuation and mitigate risk. The best way to implement such programs is to work with a seasoned international banking team that has dedicated foreign exchange consultants with the expertise and analytics to help a business take full advantage of favorable exchange rate fluctuations.

Supply Chain Diversification: Another tactic being employed by businesses in and beyond Florida is reducing reliance on single countries or suppliers heavily impacted by tariffs. Businesses are actively seeking alternative sources for materials and components, both domestically and from countries with more favorable trade agreements. This might involve shifting production or procurement to nations in Latin America, the Caribbean, Southeast Asia or Europe, even if it entails new logistical challenges or slightly higher initial costs.

Cost Absorption and Price Adjustments: Many businesses initially try to absorb a portion of the increased costs to remain competitive and avoid alienating customers. However, this is often unsustainable, especially for small and medium-sized enterprises with tighter margins. Over time, a common response is to pass on some, if not all, of the increased costs to consumers through higher prices. This can lead to a delicate balancing act, as companies must gauge consumer willingness to pay more.

Inventory Management and Advanced Procurement: Some businesses are strategically front-loading or increasing their inventory of goods before new tariffs take effect or in anticipation of future price hikes. This allows them to lock in current prices and provides a buffer against immediate cost increases. For instance, some construction firms are buying steel, aluminum and rebar in bulk, and exploring early purchases of imported kitchens.

Contract Renegotiation and Clauses: Companies are revisiting existing contracts with suppliers and customers to address the impact of tariffs. This includes negotiating better payment terms, volume discounts or cost-sharing arrangements. For prospective contracts, businesses are incorporating price escalation clauses and explicitly defining responsibility for tariffs to avoid future disputes. They are also considering shorter-term contracts to allow for greater flexibility in responding to fluid tariff policies.

Exploring New Markets: Recognizing the challenges in traditional export markets affected by retaliatory tariffs, Florida companies are actively seeking out new opportunities in regions with less volatile trade relationships. This involves exploring emerging markets in Europe, Latin America and Southeast Asia.

If one thing is certain, it’s the persistence of uncertainty. While temporary pauses on some tariffs offer brief respites, the unpredictable nature of trade policy makes long-term planning difficult. Companies are striving for adaptability, transparency with their stakeholders, and a proactive approach to risk management to weather what many describe as an "economic hurricane." The ability to diversify, innovate and maintain financial flexibility will be key to their resilience in this evolving global trade environment. Above all, it is critical to engage a commercial banking partner with a dedicated relationship team that includes international trade and foreign exchange consultants who can provide not only just capital, but also the guidance and strategy, to ensure tariff-era success.


Mike Walker is Executive Director of Middle Market Banking at Synovus Bank in South Florida.

Jeffrey Beisler-Snell is Head of International Banking at Synovus Bank.