The Alberta Greenhouse Growers Association says potential U.S. tariffs will have little impact on consumers buying locally grown fruits and vegetables. The inside of one of the facilities at Big Marble Greenhouses is shown in this file photo.--FILE PHOTO
bmiller@medicinehatnews.com
As Canadian steel and aluminum manufacturers prepare to face 25 per cent tariffs by U.S. President Donal Trump, set to take effect on March 12, the Alberta Greenhouse Growers Association is waiting, and ready, to respond if Canada’s agriculture sector is also hit with American trade tariffs.
Michiel Verheul, president of the Alberta Greenhouse Growers Association and operation manager of High Q Greenhouses located in Sturgeon County, says if a 25 per cent is imposed across the board, customers in Alberta will not see any significant rise in costs to locally grown fruits and vegetables.
Verheul explains that new tariffs could increase the costs of seeds and plastic products that Alberta greenhouses purchase from the U.S., but says those costs only account for a small portion of business expenses.
“For most of us, the largest expense is labour, in the horticultural business that usually compensates for 25 to 27 per cent of your annual cost,” says Verheul. “Then there is utilities, water, gas, power, that makes up another 12 to 15 per cent. So the impact for things that we’re being tariffed on are not necessarily having a huge impact on the price.”
Additionally, many growers in Alberta have developed good working relationships with their business partners and distributors south of the border, and says they are proactively planning to absorb some of the tariff costs on their goods.
“We’ve already seen that some supply companies from the States say if this happens, we’re going to absorb 10 per cent of the tariff, so you’re paying 15 per cent and we’re paying 10 per-cent.
“The companies you’ve built relationships with, they still want to do business with you after the tariffs … They want to work with us,” said Verheul.
Canadian growers are also asking U.S. producers to send supply shipments earlier this season to avoid a potential new tariff imposition in March.
The association is also planning to send a representative to attend the 2025 Fruit and Vegetable Growers of Canada’s Conference and Annual General Meeting held in Quebec City from March 10-13 to discuss tariff impacts.
“By the time this convention is on in the middle of March, then we may be facing a new deadline from Trump, or the 30-day period is over and we are under the gun for the tariffs.”
U.S. citizens will feel the impacts of imposed tariffs on their wallets, explains Verheul, noting Americans consumers may still be forced to buy Canadian products due to a deficit in their domestic food production.
“The consumers in the States are going to say, “We’re not buying Canadian stuff because it’s 25 per cent more than ours,” but they may be forced to, because in a lot of cases, there is not enough produce to feed all the Americans.”
Verheul told the News he predicts imposed tariffs would have a larger negative effect on Eastern Canadian producers than in the West, as very little produce and no bedding plans are exported to the U.S.
Last week Massimo Bergamini, executive director of the Fruit and Vegetable Growers of Canada, attended the Canada-U.S. Economic Summit in Toronto to highlight the risks posed by potential trade tariffs.
On Feb. 7, Bergamini highlighted potential disruptions to the supply chain as well as the increased costs of food to more than 150 politicians and stakeholders attending.
“Canada’s fruit and vegetable sector is deeply integrated with the U.S. market, ensuring year-round access to fresh, high-quality produce on both sides of the border,” said Bergamini. “A stable and predictable trade environment is critical to food security, economic resilience and the viability of Canadian farms.”
