President Donald Trump announced sweeping changes to U.S. trade policy last Monday, imposing a 25% tariff on all steel and aluminum imports and eliminating previous exemptions and exceptions. The move, set to take effect March 12, expands on tariffs implemented during Trump’s first term in 2018 and escalates ongoing trade tensions with key U.S. partners.
The new executive orders also close loopholes and terminate all country exemptions. The White House claims the action aims to revitalize domestic production, but critics warn of potential widespread economic impacts amid Trump’s escalating trade war.
“Folks who are going to feel the effect of it are new homes coming on the market in a few months,” said Lisa Colon, a legal advisor specializing in construction and real estate development. “The consumer, at the end, bears the brunt of any increase in pricing. It’s always passed down.”
The tariffs are expected to affect major U.S. trade partners, including Canada, Mexico and the European Union, potentially sparking retaliatory measures and escalating trade tensions globally. Concerns have also been raised about the policy’s effect on Florida’s housing market, as increased material costs could drive up prices for consumers
“There’s not a steel factory that’s just waiting online to come up, because we’re going to need more,” said Colon, highlighting the challenges of rapidly increasing domestic production. “There’s more demand. You know, somebody has to have the capital, the land, and everything else that it takes to invest in bringing up a steel factory.”
The pandemic has exacerbated housing issues in Florida, with increased demand from out-of-state buyers.
“Miami grew at a rate that no other major city in the history of this country has grown,” said Colon. “Miami is an experiment right now as to whether or not that kind of growth is sustainable.”
The tariffs will significantly affect trade relationships with Canada and Mexico, which accounted for nearly 40% of U.S. steel imports last year. Canada alone supplied 3.2 million metric tons of aluminum products for U.S. domestic consumption in 2024.
Economists warn that the tariffs may do more harm than good. A 2019 Federal Reserve study found that U.S manufacturing industries hit hardest by tariffs saw around 75,000 job losses. The Peterson Institute for International Economics estimates that Trump’s previous steel tariffs cost taxpayers more than $900,000 each year for every job they saved or created.
Dr. Randall G. Holcombe, an FSU economics professor, cautioned about broader economic impacts. “It might make housing a little less affordable, especially multi-unit housing that uses a lot of steel,” he said. “But the overall impact of the tariffs is probably going to be broader than that, because it’ll have a negative impact on the U.S. economy.”
While the tariffs aim to boost American manufacturing, Colon emphasized that the effects won’t be immediate. “Yes, it’s going to encourage American growth, but not immediately,” she said. “I would not even say in the time frame of this administration.”
