News » 07.09.2026 - Industry reacts to newly ramped up tariff announcements
The International Fresh Produce Association (IFPA) issued a statement following the implementation of new U.S. tariffs on Canadian imports:
"The implementation of new tariffs on Canadian goods adds to the uncertainty facing the agriculture industry operating across the highly integrated North American market. Last year, Canada accounted for 48 percent of U.S. fresh produce exports, over $3.5 billion in produce sales. In total, the United States and Canada share nearly $6.5 billion in annual fresh produce trade," notes the statement.
"Canada is also a major supplier of cut florals and floral inputs, as well as an important source of critical inputs that U.S. fruit and vegetable growers rely on. A stable, predictable trade relationship with Canada is essential to the growers, businesses, and consumers who depend on a strong North American fresh produce supply chain."
The effects of trade tensions
As Richard Lee of the Ontario Greenhouse Vegetable Growers (OGVG) notes, while Ontario-grown greenhouse vegetables are not currently subject to the newly announced U.S. 50 percent tariffs, greenhouse produce is not immune to the broader effects of escalating trade tensions. He points out that the most direct impact at this stage is on wood fibre packaging products used in the sector, which account for a relatively small share of total production costs.
"The stability and predictability of that trading relationship is critical to growers, retailers, and consumers on both sides of the border," Lee says.
Lee also notes that Ontario's greenhouse vegetable sector is deeply integrated with the North American food supply chain with tomatoes, peppers and cucumbers grown in the province moving efficiently across the border. "The stability and predictability of that trading relationship is critical to growers, retailers, and consumers on both sides of the border," he says. "While our products may not currently be subject to these tariffs, we are concerned about the potential unintended consequences of an escalating trade dispute."
Navtej Bains of Westberry Farms, a blueberry grower, packer and processor in British Columbia, shares those concerns. "We're already operating on the tightest margins–they're razor thin and this is a hard thing to hear," he says. "The supply chain on both sides of the border is so integrated. Having consistent reliable access to the U.S. is so important."
The state of future business
Bains also notes that the tariff news impacts the planning of future business given the lead time agriculture needs, which is often months, when making decisions around financing, labor, packaging and more.
It's a sentiment Lee shares. "Continued escalation creates uncertainty for businesses making long-term investment decisions and increases the risk that future growth plans could be delayed or reconsidered."
After all, growers and shippers have been talking for months–if not year–about higher and higher input costs. "If Canada responds with additional retaliatory measures, policymakers must carefully consider the impact on agricultural inputs and greenhouse production costs," says Lee, noting the sector depends on a range of cross-border products, including greenhouse technology, equipment, parts, packaging materials, fertilizers, crop protection tools, and other essential inputs. "Should those inputs become subject to retaliatory tariffs, growers could face substantially higher operating costs. Those additional costs do not simply disappear. They ultimately work their way through the supply chain and can contribute to higher food prices for consumers. At a time when affordability remains a major concern for families in both Canada and the United States, we should be looking for ways to lower costs, not add to them."
The additional tariffs ultimately magnify existing concerns in the industry around instability and not just in Canada. "Just so much changes day to day in the rhetoric between the U.S. and Canada and you just don't know what to think or how long it is all going to last," says Roger Riehm of Blue Creek Produce. "The uncertainty of what the governments are doing all factors in where we are today and where we're going to be tomorrow."
Bains says the supply chain on both sides of the border is so integrated and that having consistent reliable access to the U.S. is so important.
Hurting consumers
What is certain is that there will be an effect on consumers. "From a consumer perspective, trade barriers rarely produce winners. Whether through direct tariffs on food products or indirect impacts on production costs, consumers on both sides of the border typically end up paying more," says Lee. "Fresh produce should remain affordable and accessible. Governments need to be mindful that actions taken in response to broader trade disputes can have unintended consequences for food affordability and food security."
"These costs will have to be absorbed by someone in the supply chain–but there's only so much that growers packers processes retailers can absorb until it actually starts to reach the customer. They'll be hurt as well," says Bains. "We're all feeling it and this clamps down on margins that are already thin."
So where to from here? In its statement, the IFPA is encouraging both governments to continue working toward a negotiated resolution that reduces trade barriers and provides the certainty growers need to plan, invest, and keep fresh produce available and affordable for consumers on both sides of the border."
It's the same sentiment from the OGVG. "Our message is simple: agriculture should not become collateral damage in a broader trade conflict," says Lee. "The Canada-U.S. greenhouse vegetable supply chain has benefited growers, workers, businesses, and consumers on both sides of the border for decades. We encourage governments to pursue solutions that preserve open trade, maintain competitiveness, and protect consumers from further cost increases."
Source: www.floraldalily.com
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