NOSCushrooms from Scelta Mushrooms in Venlo end up in American restaurants
NOS Nieuws•gisteren, 19:26
Steel, aircraft parts and mushrooms regularly leave the Netherlands for America. Trade with the United States is of great importance to the Netherlands. Both economists and entrepreneurs are concerned about possible trade measures after the American elections.
In the run-up to the elections next week, Republican presidential candidate Trump has indicated that he wants to protect American companies. For example, he wants to impose a universal import tariff of 10 percent.
Since then, various organizations have warned about the risks of protectionist measures for the global economy. The higher American import duties would be at the expense of global economic growth, inflation will rise and Europe and countries such as China will probably introduce countermeasures.
From chemistry to transport
This also has negative consequences for Dutch trade. Rabobank calculated that the Dutch economy will be 10 billion euros smaller in the long term if Trump is elected than if Democrat Harris becomes president.
“Ultimately, the import tariff is paid by the American consumer,” said Marieke Blom, chief economist at ING. “But they will want to buy fewer European products. So the Dutch sales market will become smaller.” The chemical, pharmaceutical and transport sectors, among others, will suffer from this, Blom expects.
NOSMarieke Blom, chief economist at ING
For the Netherlands, as a small open economy, it is important that trade with important partners such as the US continues to run as smoothly as possible, says Blom. “Everyone in America agrees that the battle must be entered into with China. If the Democratic candidate wins, it will mean that America will do so with Europe. But if the Republicans win, the United States will also focus on Europe.”
More imports than exports
At mushroom processor Scelta Mushrooms from Venlo, the influence of the American elections has been palpable for six months. The family business, which exports frozen and long-life mushrooms, notices that potential customers are postponing investments. “They don’t dare to take risks and prefer to wait for the elections,” says co-owner Jules Klerken.
The mushrooms from Scelta Mushrooms end up on pizzas and burgers from around 6,000 American restaurants. The United States is the largest sales market for the Limburg company.
Dutch companies, such as the family business from Venlo, exported goods worth 33.8 billion euros to the American market in 2023, according to reported the Central Bureau of Statistics (CBS).
But the share that the Netherlands imports from America is larger. About 10 percent of all goods come from the United States. Together they amount to approximately 64 billion euros. This mainly concerns crude oil and natural gas.
This makes the United States the largest supplier of goods to the Netherlands after Germany. That dependence on the US makes us vulnerablethe Central Planning Bureau (CPB) warns.
Spreading opportunities
ING chief economist Blom sees that the business community is trying to protect itself against protectionist measures. “Entrepreneurs try to spread risks by being in many different places or opt for certainty by working with a specific customer or supplier.”
This also applies to Jan Klerken of Scelta Mushrooms, Jules’ father. He doesn’t think it would be a party if Donald Trump were to become president, but he has been considering a possible re-election for two years. “We are working on tapping into new areas.”
ANPDe USA is one of the most important buyers of Dutch flower bulbs
Other Dutch companies are also preparing for all kinds of scenarios, such as Tata Steel Netherlands. “But we do not immediately act on it,” a spokesperson said. Several companies have informed NOS that they are awaiting the results and have not commented on how they are preparing for it.
‘Trump desperately needs Europe’
Marco Groot of flower wholesaler FleuraMetz FM Group expects that everything will not be too bad. “Trump desperately needs Europe to sell American products.” Perhaps Republican gains in the race for the White House will even be beneficial for the entrepreneur. “Trump keeps taxes low for us and that gives you more room on your company balance sheet.”
Mushroom processor Jan Klerken also expects “to never completely disappear from the US”, regardless of the election results.
Mushrooms and Markets: The Dutch Dilemma
By your favorite comedy hybrid of Jimmy Carr, Rowan Atkinson, Ricky Gervais, and Lee Evans!
Ah, feel that? It’s the aroma of trade war simmering on the economic stove! Steel, aircraft parts, and… mushrooms? Yes, you heard that right! It seems that while the Netherlands might be famous for their tulips, they are slowly becoming the **mushroom capital of American delicacies**. But alas, the winds of change are blowing with the upcoming American elections, and let’s just say, it’s making the vegetable aisle quite spicy!
The Mushroom-to-Money Pipeline
According to our good friends at NOS Nieuws, Scelta Mushrooms in Venlo has been sending their fungus delights—yes, the ones you might find on your pizzas and burgers—straight to about 6,000 restaurants across the United States. Who knew mushrooms had such a social life? Just imagine them, mingling with the pepperoni and administration of cheese on a calm Friday night.
However, with Trump rising like a suspiciously large mushroom out of the American political ground, he’s got plans—heavy ones! A 10 percent import tariff is being dangled like a carrot—or should I say mushroom?—in front of economists and entrepreneurs alike. If you think FOMO is high when it comes to trending hairstyles, try being an entrepreneur facing possible tariffs!
Economics 101: The Dutch Perspective
Now, Marieke Blom, chief economist at ING, lays it out clear: these tariffs are like the bad leftovers in your fridge. They’re not going away easily. She emphatically notes that it’s the American consumer who will foot the bill, yet they might shy away from Dutch imports. Can’t be too chummy with those Dutch folks if their mushrooms are costing you 10 percent more, right?
The potential loss? A whopping 10 billion euros! Can you even fathom?! That’s about a million Dutch cheese wheels! It’s vital for the small, open Dutch economy to keep the trade routes smooth, though with Trump’s gang of Republicans, Europe might just start feeling the heat—not unlike a poorly ventilated mushroom farm!
The Postponement Predicament
So, what’s the vibe on the ground? Jules Klerken from Scelta Mushrooms echoes a familiar sentiment, “Investments are in limbo!” A state of precariousness swirls as the potential clients hum a nervous tune, delaying decisions while they wait to see who emerges victorious in the election. One can almost hear them, “Will it be Trump’s tariffs, or Harris’ hopes?” Sounds like the plot of a low-budget thriller, doesn’t it?
And on the topic of numbers, let’s dive into the figures: The Dutch merrily exported goods worth 33.8 billion euros to the U.S. this year! However, they imported even more from the States, mainly in the form of crude oil and natural gas. Looks like that economic exchange party had a bit too much to drink!
The Balancing Act of Hope
But there’s some light at the end of the tunnel, courtesy of Marco Groot from FleuraMetz FM Group, who thinks Trump has a vested interest in keeping good relations with Europe. After all, he needs a little mushroom and tulip love in his life, doesn’t he? Perhaps an unexpected twist in the story could even pave the way for better trade deals! Who knew the fate of international trade could hinge on the whim of a single politician and a family-sized can of mushrooms?
Status Update: What’s Next?
As we wait with bated breath for the election results, Dutch companies, particularly those in the mushroom business, are bracing for impact. Whether they end up thriving or merely surviving rests on the shoulders of American voters—who might just be more concerned about their avocado toast than the plight of European fungi!
So, while the world watches as election fever builds across the pond, remember that sometimes, it’s the small things—like mushrooms—making big waves in the economy. And who knows? Tomorrow’s meals might reveal a lot about today’s elections. Until then, keep your eyes peeled, your cheese wheels rolling, and your mushrooms in the fridge!
Stay tuned for more quirky economic updates, where laughter meets balance sheets!
NOS Nieuws•gisteren, 19:26
Steel, aircraft parts, and an array of mushrooms routinely make their way from the Netherlands to various locations across America. This trade relationship with the United States is a crucial pillar of the Dutch economy. However, there is a palpable sense of unease among economists and business leaders regarding potential trade restrictions that may arise following the upcoming American elections.
In light of the elections set for next week, Republican presidential candidate Donald Trump has voiced his intention to prioritize American businesses. He proposes implementing a sweeping import tariff of 10 percent on foreign goods, a move that has stirred significant concern within international trade circles.
In reaction to these proposed measures, various economic associations have raised alarms about the detrimental effects protectionism could have on global markets. Higher import duties imposed by the U.S. could dampen global economic expansion, escalate inflation, and compel European nations and other countries, including China, to retaliate with their own trade barriers.
From chemistry to transport
The potential consequences of these developments are particularly sobering for Dutch trade relations. According to Rabobank, if Trump wins the presidency, the Dutch economy could shrink by an alarming 10 billion euros in the long run compared to a scenario where Democrat Kamala Harris takes office.
“Ultimately, the import tariff is paid by the American consumer,” stated Marieke Blom, chief economist at ING. “Yet, we will see a diminishing demand for European goods, leading to a contraction in the Dutch market.” Sectors such as chemicals, pharmaceuticals, and transport are expected to bear the brunt of these changes, given their reliance on transatlantic trade.
For the Netherlands, which operates as a small but open economy, it is vital to ensure that trade with significant partners like the United States remains seamless, according to Blom. “There is consensus in America regarding the need to confront China. A win for the Democrats would signal a collaborative approach with Europe, whereas a Republican victory would likely result in increased tensions with our continent.”
More imports than exports
The impending American elections have been acutely felt at Scelta Mushrooms, a mushroom processing company based in Venlo. Co-owner Jules Klerken revealed that potential American clients have been delaying investment decisions as they await election outcomes. “They are hesitant to take risks and prefer to adopt a wait-and-see approach,” he explained.
The mushrooms produced by Scelta Mushrooms are a key ingredient in menu items at approximately 6,000 American restaurants, with the United States serving as the company’s primary sales market.
In 2023, Dutch enterprises exported a remarkable 33.8 billion euros worth of goods to the United States, as indicated by data from the Central Bureau of Statistics (CBS).
However, the Netherlands imports an even larger volume from the U.S., accounting for about 10 percent of all goods, totaling around 64 billion euros. This primarily consists of essential resources like crude oil and natural gas.
Consequently, the United States stands as the largest supplier of goods to the Netherlands after Germany, creating a relationship that, according to the Central Planning Bureau (CPB), renders the Dutch economy vulnerable due to its heavy dependency on American imports.
Spreading opportunities
ING chief economist Blom has observed that businesses are actively seeking to shield themselves from potential trade barriers. “Entrepreneurs are diversifying their operations geographically or opting for stable relationships with particular customers or suppliers to mitigate risks.” This sentiment is echoed in the strategies employed by Jan Klerken, Jules’ father, who has been proactively considering alternatives amidst the uncertainty of a possible Trump re-election. “We are exploring new market opportunities,” he noted.
Other Dutch firms are also bracing for a variety of electoral outcomes, including Tata Steel Netherlands. “However, we are not taking immediate action,” a representative stated, highlighting a cautious wait-and-see approach as the elections draw near.
‘Trump desperately needs Europe’
Marco Groot from flower wholesaler FleuraMetz FM Group remains hopeful, believing that the potential fallout won’t be as severe. “Trump desperately needs Europe to boost American product sales,” he remarked. He mused that Republican wins could even favor his business, asserting, “Trump maintains lower taxes, which provides us with more flexibility in balancing our finances.”
Similarly, mushroom processor Jan Klerken maintains a level of optimism, affirming, “I expect that we will never fully lose access to the U.S. market, no matter the outcome of the elections.”
Entral Bureau of Statistics, underscores the interdependence of the two economies.
A Culinary Crossroads
The mushroom industry serves as a microcosm of the broader trade relationship between the Netherlands and the United States. While Dutch mushrooms have practically become a staple in American restaurants, the looming specter of tariffs raises the stakes. It’s like watching a suspenseful cooking show, where the secret ingredient—mushrooms—might just get booted off the menu if the tariffs come into play.
Yet, Jan Klerken, another key player in the Scelta Mushrooms operation, remains cautiously optimistic. He assures us that their presence in the American market is likely to endure, regardless of the political landscape shifting like an unsteady mushroom farm. He believes that the demand for high-quality mushrooms will prevail, but only if they can navigate the potentially choppy waters brought about by the elections.
Conclusion: Culinary and Economic Resilience
As we stand on the cusp of election results, the entire mushroom market—and, by extension, the Dutch economy—holds its breath. With consumers’ palates and the future of countless restaurants hanging in the balance, the outcome will either lead to a flavorful expansion of international trade or a taste of the bitter tang that comes with economic protectionism.
But as they say in the culinary world, you can’t make an omelet without breaking a few eggs—or mushroom caps, in this case! Whether tariffs lead to diminished mushroom imports or not, one thing is certain: trade—and perhaps a little bit of humor—will continue to play an essential role in global markets. The future may be uncertain, but no one can deny the unyielding spirit of both mushrooms and the markets. Stay tuned for updates from the front lines of economics and cuisine!”
This has been a comedic yet informative exploration of the Dutch mushroom market amidst American political turbulence. Keep your forks ready, and may the best mushrooms win!
