US-Canada Tariff Situation

Tariff Update & Resources for Members

March 12, 2025

The newest round of retaliatory tariffs to be implemented tomorrow, March 13^th by Canada on US imports does NOT include plants.  These tariffs are primarily directed to products with steel, aluminum and iron and precious metals.  Affected products that members may import from the US include hand tools (shovels, forks, rakes etc) and cutting blades for horticulture.  For the full set of products click HERE.

The Government of Canada has announced several measures to help companies with the liquidity needed during this time including:

Export Development Canada (EDC) has $5b over two years to help exporters reach new markets and help companies navigate economic challenges imposed by tariffs including losses from non-payment, currency fluctuations, lack of access to cash flows and barriers to expansion.  For more information click HERE.

The Agricultural Credit Corporation has interest free loans up to $250,000 and can loan up to $1million with the balance at their prime rate which is currently 5.20%.  For more information click HERE.  The Government announcement can be found HERE.

Farm Credit Canada (FCC) is also providing $1b in new financing for agriculture to help with cash flow.  For more information click HERE.

The Business Development Bank of Canada (BDC) is offering $500 million in loans of up to $2m to help counter the effects of tariffs.  They also provide advisory services to help companies navigate through this time.  For more information and to apply click HERE.

To see the full Government news release click HERE.

Reminder:  PCB is providing a FREE Webinar Trade in Transition: Key Updates for Importers and Exporters is tomorrow, 9:00 am to 10:00 am save your seat HERE.

For additional support or questions, reach out to BCLNA.

March 10, 2025

While U.S. tariffs on CUSMA products have been lifted until April 2nd, Canada’s retaliatory tariffs remain in place. BCLNA is gathering information on how these tariffs are impacting our members. If your business is affected, please share details with Coreen. All responses will be aggregated, and individual business information will remain confidential. Reported impacts include reduced margins, cash flow challenges, canceled or renegotiated orders, and other financial pressures.

Cash Flow Support

At the recent Agriculture and Agri-Food Roundtable, the government announced expanded credit access through Farm Credit Canada (FCC), Export Development Canada (EDC), and Agriculture Credit Corporation (ACC) to help businesses navigate cash flow difficulties caused by tariffs.

• Export Development Canada (EDC) has introduced an additional $5 billion in funding over the next two years. This support includes mitigating exchange rate fluctuations, access to working capital, and trade credit insurance. Contact EDC at 1-800-229-0575 or visit [EDC HERE].
• Agriculture Credit Corporation (ACC) offers interest-free loans up to $250,000, with the remaining balance (up to $1 million) available at prime (currently 5.30%).

Free Webinar: Trade in Transition

BCLNA has partnered with Pacific Customs Brokers to offer a FREE webinar:

📅 Thursday, March 13, 2025
🕘 9:00 AM – 10:00 AM PT

This session will provide importers and exporters with the latest tariff updates, along with strategies to navigate the current trade environment.
🔗 Register HERE

Government Tariff Remission Process

The Government of Canada has opened a remission process for tariff relief. Although this process is expected to be lengthy, it is currently the only formal avenue for relief. Under certain circumstances, businesses may receive exemptions from paying tariffs or refunds for previously paid tariffs.

To qualify, remission applies when:

1. Inputs cannot be sourced domestically or reasonably from non-U.S. suppliers.
2. Exceptional circumstances could cause severe economic harm.

🔗 Remission Request Template & Submission Address: Government of Canada Remission Process

Agri-Stability & Agri-Invest Support

Growers are encouraged to apply for Agri-Stability, which is expected to be the primary relief mechanism. To learn more about recent changes to Agri-Stability and Agri-Invest, Farm Management Canada is hosting two FREE live sessions:

• Agri-Stability: 📅 Wednesday, March 12, 2025, at 9:00 AM PT
• Agri-Invest: 📅 Tuesday, March 11, 2025

🔗 Register HERE

Importing & Exporting Tip

When importing, ensure your supplier uses CUSMA instead of the “most-favoured nation” status to avoid unnecessary tariffs. The same applies when exporting.

For additional questions or support, please reach out to Coreen at 604-575-3500 ext 116.

Tariff Update for Retailers

Retailers may face not only the same tariffs as growers see HERE, should the CUSMA tariffs be reinstated by the U.S. and further retaliatory tariffs take place, but also additional tariffs on a range of non-plant-based products, including beauty products, accessories, blankets and linens, glassware, imitation jewelry, plastics, clothing, shoes, kitchenware, and more.

To stay informed about current tariffs on imported products, use Export Development Canada’s (EDC) tariff tracking tool HERE. For risk mitigation strategies and business advice, refer to BDC’s resources HERE. PCB is also putting on a FREE Trade in Transition webinar on March 13^th to help with understanding import requirements etc. Register HERE.

Labelling & Consumer Preferences

As consumer demand for Canadian-made products increases, it’s essential to ensure accurate product labelling. The Retail Council of Canada provides guidance on properly labeling goods as “Made in Canada” or “Product of Canada.” Access their guidelines HERE.

For additional support or questions, reach out to BCLNA.

March 6, 2025

The U.S. has postponed the imposition of 25% tariffs on Canadian and Mexican goods and services that comply with the Canada-U.S.-Mexico Agreement (CUSMA) until April 2, 2025. Under CUSMA HS codes 0601 to 0604, live plants, bulbs, and flowers are subject to zero tariffs, meaning they should continue to enter the U.S. tariff-free. For the full U.S. Tariff Schedule under CUSMA, click HERE.

Canada’s proposed retaliatory tariffs include live plants, bulbs, propagation material, and fertilizers—products that could significantly impact our growers. To view a condensed list of affected items, click HERE.

There is an opportunity to respond to these proposed tariffs until March 25, though early submissions are strongly encouraged. To make a compelling case, we need data to demonstrate the potential harm. While I will be reviewing trade data, it would be far more impactful to provide specific examples and a consolidated assessment of the financial impact. This information will help quantify the effect of the tariffs, allowing the government to consider remissions or removal.

With respect to Landscape professionals building stone and slate are included in the proposed retaliatory tariffs HS codes 6801 to 6803.

March 4, 2025

US President Donald Trump confirmed on Monday, March 3, 2025, that 25% tariffs will be implemented on Canadian and Mexican imports on Tuesday despite the initiatives to control fentanyl trafficking into the US and illegal migration.

All imports of Canadian goods are to be hit with a 25% tariff except for energy which has a 10% tariff.

Canada has worked constructively and collaboratively and invested billions of dollars over this past month to address the concerns raised by the US administration. Canada has addressed the US concerns regarding fentanyl, as proved by the US Border Service data.  This removes any potential justification of US tariffs.  In return, Canada has implemented $30 billion in tariffs immediately, with another $155 billion to be implemented in 21 days’ time. The Prime Minister stated that EI will be expanded and made more flexible, and businesses will be supported.

Expected Impacts

Higher Equipment and Supply Costs

• Many landscaping tools, machinery, and supplies are imported from the U.S., retaliatory tariffs will make these more expensive.
• Tariffs could increase prices, squeezing profit margins and potentially raising service costs.

Plant Material Availability and Pricing

• Plant imports from the U.S. may become limited, and prices will likely rise.

The Importance of U.S. Exports for Canadian Growers

• Canada exports a diverse range of live plants with soil to the U.S., including turf sod, potted plants, and bedding plants. These will become more expensive to U.S. purchasers, potentially leading to contract renegotiation or cancellations.
• Reduction in exchange rate will offset some of the export costing to U.S. buyers but will make inputs from the U.S. even more expensive even without retaliatory duties.
• Most other countries cannot sell plants with soil to the U.S. due to phytosanitary restrictions, making Canada’s exports uniquely valuable. However, the same applies to Canadians selling to other countries.
• The U.S. accounts for 99.6% of Canadian plant exports and 45.3% of plant imports by value.
• The total value of Canadian ornamental exports (including Christmas trees) increased by 13.1% from 2022 to $1.073 billion in 2023.
• The 2023 total value of ornamental exports was 39.4% higher than the average of the previous four years.

Economic Slowdown and Reduced Demand

• A trade war could slow the economy, leading to:
  • Less consumer spending on gardens and landscaping services.
  • However, gardens and gardening may be more popular as travel is reduced and costs for other recreation increase, as during COVID.
  • Construction delays affecting landscape installation projects.

Challenges for Canadian Exporters

• Members exporting plants to the US face a 25% tariff affecting prices and potential sales.
• Even with exchange rate advantages, long-term losses may not be sustainable.

What is BCLNA Doing?

BCLNA is actively working to protect and support members affected by these trade developments.

1. Provide Regular Updates to Members

• Obtain feedback from members on impacts to use for government relations and advocacy.

2. Government Relations and Advocacy

• Monitoring tariff policies by working with BCAC, CNLA, COHA, and AAFC (Agriculture and Agri-Food Canada roundtable) as well as the BC Ministry of Agriculture and Food.
• Advocating for the federal government to reinvest tariff revenues into support programs for affected small businesses.
• Advocating for the federal government to exclude plants and plant-based products from retaliatory tariffs.

3. Advice and Planning

• Secure essential plant materials and supplies in advance to mitigate potential shortages.
• Recommend members source alternative and multiple suppliers to reduce reliance on the U.S.
• Source materials domestically or from international partners where possible.
• Stock up on key materials: If tariffs are implemented, prices may increase quickly.
• Stay informed: Trade conditions can change rapidly—be prepared for possible shifts.

4. Consider

• Re-evaluate pricing structures to protect profit margins.
• Add value to products and services rather than just increasing prices.
• Offer bundled services or premium options to offset increased costs.

5. Strengthen Local Partnerships

• Collaborate with local businesses and suppliers to create a stronger industry network.
• Share resources, best practices, and strategies within the community.
• Strengthen B2B relationships to sustain the industry.

6. Stay Informed and Engaged

• Monitor tariff updates and trade policies closely.
• Engage with industry associations, government groups, and local chambers of commerce.
• Stay involved in advocacy efforts to ensure our concerns are represented.

7. Focus on Customer Communication

• Be transparent about potential price or product availability changes.
• Strengthen client relationships by educating customers on industry challenges.
• Proactively offer solutions, such as early booking discounts or alternative service options.

Additional Resources for Mitigating Tariff Risk

Business Development Bank of Canada (BDC)

BDC offers resources for small and medium-sized enterprises to help mitigate financial risk due to tariffs, including:

• Cash Flow Planning & Financial Support: Access tools and strategies to manage cash flow disruptions due to trade uncertainties.
• Supply Chain Diversification Strategies: Guidance on reducing reliance on U.S. suppliers and sourcing from alternative markets.
• Financing Solutions: Access working capital loans to help businesses adjust to changing costs.
  • More information: www.bdc.ca

Export Development Canada (EDC)

EDC provides support for exporters dealing with trade disruptions, including:

• Tariff Mitigation Strategies: Expert analysis on how businesses can respond to tariff changes.
• Market Diversification Support: Assistance in finding and accessing new markets to reduce dependency on the U.S.
• Trade Credit Insurance: Protects Canadian businesses against non-payment by U.S. buyers impacted by higher costs.
  • More information: www.edc.ca

Pacific Customs Brokers (PCB)

Pacific Customs Brokers offers specialized services to help businesses manage tariff risks and ensure compliance, including:

• Tariff Classification & Duty Minimization: Guidance on proper tariff classification to reduce duty exposure.
• Customs Brokerage Services: Ensuring smooth import/export processes and compliance with trade regulations.
• Supply Chain Optimization: Identifying alternative sourcing and logistics strategies to mitigate tariff impacts.
• Trade Agreements & USMCA Compliance: Helping businesses maximize benefits under existing trade agreements.
  • More information: www.pcb.ca

These strategies and resources will help ensure our industry remains resilient, regardless of the trade landscape.