U.S.-Canada Tariff Dispute: Horticulture Industry Grapples with Uncertainty
Table of Contents
- 1. U.S.-Canada Tariff Dispute: Horticulture Industry Grapples with Uncertainty
- 2. Industry Leaders Emphasize Collaboration
- 3. suppliers Acknowledge the Impact
- 4. Government Resources and support
- 5. Navigating the Tariff Landscape: Strategies for U.S.Businesses
- 6. The Path Forward
- 7. Resources
- 8. What are some strategies that U.S.businesses can use to mitigate the negative impacts of the U.S.-Canada tariff dispute on their operations?
- 9. Navigating the U.S.-Canada Tariff Dispute: An Interview with Dr. Eleanor Vance,Horticulture Trade Economist
- 10. Understanding the Impact of Trade Tariffs
- 11. The Ripple Effect Across the Value chain
- 12. Government Support and Business Strategies
- 13. Future Outlook for the Horticulture Industry
- 14. A Call to Action
Published: April 4, 2025
Milton, Ontario – April 4, 2025 – The ongoing trade dispute between the United States and Canada continues to cast a shadow over the ornamental horticulture industry. On April 2, over 160 small business owners, staff, and industry partners convened at a Town Hall meeting to address the escalating concerns surrounding U.S.-Canada tariffs. The meeting,a critical forum for discussion and strategizing,highlighted the profound impact of these tariffs on businesses across the value chain.
The session, led by Landscape Ontario (LO) Executive Director joe Salemi, featured key insights from Victor Santacruz, executive Director of the Canadian Nursery Landscape Association (CNLA), and Corinne Pohlmann, Executive Vice-President of advocacy group, the Canadian Federation of Independent Business (CFIB). Their presence underscored the gravity of the situation and the need for a collaborative approach to mitigate the adverse effects of the tariffs.
Industry Leaders Emphasize Collaboration
the horticulture industry, encompassing everything from nurseries and landscaping services to retail garden centers and suppliers, faces a period of notable uncertainty. these tariffs, often implemented as countermeasures in broader trade negotiations, directly impact the bottom line of businesses importing and exporting plant materials and related products.
Joe Salemi, Executive Director of Landscape Ontario, stressed the importance of a unified front, stating:
It is a complex piece of work that the government must do to figure out whatS best for the Canadian economy.
Salemi also underscored that, “In these uncertain times, it’s more crucial than ever that we stand together both as a community within Landscape Ontario and the provincial associations across the country and together as the Canadian Nursery Landscape Association. By working together, we can mitigate as many of the negative impacts as possible and ensure that the continued strength and resilience of our industry remains.”
This collaborative spirit is vital for navigating the complexities of international trade and advocating for policies that support the industry’s long-term health.
Imagine a scenario where a small landscaping business in upstate New york relies on importing specific types of Canadian-grown trees for its high-end residential projects. Tariffs on these imports directly increase the cost of doing business,possibly pricing them out of competitive bids. Similarly, a nursery in Oregon that exports ornamental shrubs to Canadian garden centers faces reduced demand due to increased prices for Canadian consumers.
To ensure concerns are addressed promptly,“CNLA members where encouraged to contact their respective provincial association or the CNLA if they have questions or concerns about the ongoing trade dispute. As this fluid issue evolves, a CNLA Task Force on U.S.-Canada tariffs will meet regularly.The task force includes representatives from provincial associations across Canada as well as members of the CNLA board of directors.”
suppliers Acknowledge the Impact
The ripple effects of these tariffs extend beyond growers and landscapers to include suppliers of equipment, fertilizers, and other essential inputs. Dave Clark, Branch and Sales Manager of Brandt Tractor in Milton, Ontario, attended the Town Hall to gain a better understanding of the challenges facing his customers.
Clark noted, “It was great to hear many of the concerns from the nursery industry and also the landscape industry. As a supplier, we need to know those things. We need to know what’s bothering them, what questions they have, and the different ways they may be able to still work through the tariffs with their business and their options.”
Understanding the specific pain points of businesses allows suppliers to tailor their offerings and provide support during this challenging period. Such as, a fertilizer manufacturer might offer discounts or explore alternative sourcing options to help customers manage costs.
Government Resources and support
The Canadian government has announced several liquidity measures to support businesses affected by the tariffs. While these measures are specific to Canadian businesses, they offer a potential model for similar initiatives in the United States. These measures, announced March 7, include:
- Trade Impact Program: Export Progress Canada will deploy $5 billion over two years to help exporters navigate tariffs, cash flow issues and market expansion.
- Business Loans: $500 million in low-interest loans via the Business Development Bank of Canada for affected sectors and supply chains, plus financial advisory services.
- Agriculture Support: $1 billion in new financing through Farm credit Canada to ease cash flow challenges for the agriculture and food industry.
- Advance Payments Program: The interest-free limit is set at $250,000 for 2025.
For U.S. businesses, exploring resources like the Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA) for potential assistance programs is crucial.
While the U.S.-Canada tariff situation remains fluid, here are some practical steps U.S. businesses in the horticulture industry can take:
- Diversify Sourcing: Explore alternative suppliers within the U.S. or from countries not subject to the tariffs.
- Renegotiate Contracts: Review existing contracts with Canadian suppliers and explore options for renegotiating terms or sharing the tariff burden.
- Improve Efficiency: identify areas to improve operational efficiency and reduce costs to offset the impact of tariffs.
- Advocate for Policy Changes: Engage with industry associations and elected officials to advocate for policies that promote fair trade and reduce tariff barriers.
- Seek Expert Advice: Consult with trade lawyers, accountants, and other professionals to understand the legal and financial implications of the tariffs and develop appropriate strategies.
The Path Forward
The U.S.-Canada tariff dispute presents a significant challenge for the ornamental horticulture industry. However, by fostering collaboration, seeking government support, and implementing proactive strategies, businesses can navigate these uncertain times and ensure the continued vibrancy of the sector.The importance of open dialog and adaptation cannot be overstated. Staying informed, seeking expert guidance, and advocating for a stable and predictable trade environment will be crucial for long-term success.
Resources
| Resource Type | Description | Link |
|---|---|---|
| Full Town Hall Recording | Watch the full Town Hall on U.S.-Canada Tariffs | Watch the full Town Hall on U.S.-Canada Tariffs |
| landscape Ontario | The province’s premier horticultural trades association, with 3,000 professional members, 10 regional chapters and 10 sector groups. | Landscape Ontario Horticultural Trades Association |
| Canadian Nursery Landscape Association | A national, not-for-profit federation of provincial landscape and horticulture associations representing over 4,000 members in the landscape, retail garden center, and nursery sectors. | Canadian Nursery Landscape Association |
| Canadian Federation of Independent Business (CFIB) | The CFIB has been the country’s champion of small business since 1971. With over 100,000 members, the CFIB is Canada’s largest non-profit organization devoted to creating and supporting an environment where businesses can succeed. | Canadian Federation of Independent Business (CFIB) |
What are some strategies that U.S.businesses can use to mitigate the negative impacts of the U.S.-Canada tariff dispute on their operations?
published: April 5,2025
Understanding the Impact of Trade Tariffs
Archyde News: Dr. Vance, thank you for joining us. Can you begin by outlining the primary economic impacts of the ongoing U.S.-Canada tariff dispute on the ornamental horticulture industry?
Dr. Vance: Certainly. The tariffs increase the cost of imported and exported plant materials and related products. This directly squeezes profit margins for businesses, potentially leading to reduced investment, layoffs, or even business closures. We’re seeing these effects across nurseries, landscaping companies, and retail garden centers.
The Ripple Effect Across the Value chain
Archyde News: The article mentioned impacts to suppliers. Can you elaborate on how the tariffs effect suppliers within the horticulture industry?
Dr. Vance: Absolutely. Suppliers, like those providing equipment, fertilizers, and other essential inputs, also feel the pinch.Reduced demand from growers and landscapers translates into less revenue for suppliers. They may then have to explore alternative sourcing which can also increase their costs.
Government Support and Business Strategies
Archyde News: The article highlights some Canadian government support programs. Are there similar programs or strategies that U.S. businesses can use, and what are some key strategies they should employ?
Dr. vance: While the details differ, U.S. businesses should certainly explore resources through the Small Business Management (SBA) and the U.S. Department of Agriculture (USDA). These programs could offer financial assistance or export promotion resources. In terms of strategy, diversifying their supply chain and renegotiating contracts with suppliers are key.Also, improving operational efficiencies and advocating for policy changes is critical.
Future Outlook for the Horticulture Industry
Archyde News: Given the uncertainty, what long-term strategies should the ornamental horticulture industry embrace to navigate these turbulent times?
Dr. Vance: building resilience through diversification is paramount. This means exploring both different markets and different suppliers. Strong industry collaboration and advocacy are also vital. Staying informed, seeking expert advice, and adapting quickly will be crucial for long-term success. It’s a time for robust, strategic planning.
A Call to Action
Archyde News: Dr. Vance, what is one thing you’d like to highlight to our readers about the importance of this issue?
Dr. Vance: I’d like to emphasize the importance of adaptability. The horticulture industry has always been dynamic. This situation requires businesses to be proactive, innovative, and willing to experiment with solutions. A great question to ponder is: How can horticulture businesses capitalize on this challenging time, by seeking government assistance, or investing in new markets?
