We are Living in Expensive Times

There is a lot of uncertainly surrounding the Trump administration's new policies, but what is clear, is our industry is being hit with some pricing challenges. Our company, as well as other wholesalers, are feeling the effects of tariffs which are now in place for many of our products. One thing is for sure, as we have seen over the past few months, tariffs are a moving target and could change as time goes on.

Here's What You Need to Know Right Now

According to industry sources, as of August 7th, the tariffs are in place for the following countries. Since the majority of flowers moving into the United States are grown in Columbia, Ecuador and the The Netherlands, you will see prices increase; however, they may not be the full tariff amount, as some suppliers are absorbing the costs.

Here are the tariff's affecting the floral business right now:

Colombia (10%) This went into affect in April.

Ecuador (15%) This is in addition to the duties already in affect since 2018.

Canada (0%)

Mexico (0%)

European Union (15%)

Thailand (19%)

China (30%) - could change pending final deal on 11/9/25

India (25%) - could go up to 50%

Vietnam (20%)

On Again Off Again

The Colombian tariff was already in place starting in April, so we have already seen this increase in pricing. Some of our suppliers have absorbed 2-3% of the cost, but we have no idea how long this will continue.

Ecuador has had duties in place for the past few years. Signed in 1976, The Generalized System of Preference (GSP) was set up so certain Ecuadorian products could enter the U.S. without tariffs. The agreement expired on December 31, 2020 and is still pending renewal by Congress. As a result, duties were implemented on January 31, 2021. These include a 6.8% duty on roses, a 3.2% duty on mini carnations, a 6.4% duty on on bleached or dyed flowers and a 6.4% duty on all other flowers. The recent 15% tariff implemented on August 7th is on top of these duties.

We have seen the largest change in hard goods pricing. Although we buy from U.S. companies, many of the products are made in China and have been subject to the 30% tariff. These could go even higher if the U.S. does not reach an agreement with China.

Hopefully The 0% Tariff Rate Holds For Mexico And Canada

A few months ago florists and wholesalers were concerned with the 25% tariff proposed back in April, but now this is on hold. Mexico is a very small supplier of flowers to the U.S. For growers in Canada; however, the U.S. represents the largest market for floral product because of its location. Canada exports a diverse range of live plants, with soil, to the United States (U.S.) including turf sod, potted plants, and bedding plants. Most other countries cannot sell plants with soil to the U.S. Canadian product is idea because growers can reach over 51% of wholesalers and retailers within a day of harvest.

The horticulture sector is roughly a $3.02+ billion industry for Canada. According to the Canadian government, floriculture (flowering and non-flowering live potted plants, greenhouse and field-cut flowers) remained the largest ornamental sub-sector by revenue ($2.07 billion), accounting for 68.7% of total ornamental sales. The total value of floriculture sales have been increasing over the last five years.

We supply our customers with gerberas, snapdragons, stock and lilies from Canada. Canadian grown flowers are superior in quality and freshness. A 25% tariff would hit our industry hard - so for now that is one less increase to worry about.

What We Can Do

With the chaos and uncertainly coming out of Washington, it is hard to predict where our industry will land. Keep in mind all tariffs can change as more negotiations take place.

Until then, there are a few things we can do to brace for these increases:

1. Source more locally grown and locally manufactured product.

2. Be mindful of the country of origin in your buying and know which prices are increasing.

3. Ask your suppliers to source other alternatives that may be less expensive.

4. Make sure you are tracking expenses by product as they change so you have a clear understanding of your costs and margins. You may have to adjust your designs and use less expensive flowers to keep your profit up.

5. Cut down in other ways - buy tighter, make your delivery routes more efficient, etc.

“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.” – Franklin D. Roosevelt