March 6, 2025
ON HOLD - 25% Tariff on hold until April 2
U.S. President Donald Trump said Thursday he is again pausing his tariffs on some Canadian goods, offering the country yet another roughly month-long reprieve from a punishing 25 per cent levy.
Read more >> Trump pausing tariffs on some Canadian goods until April 2
March 5, 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.
To see the news release, click here.
To see the initial list of US products under tariff click here. The list mostly contains general consumer goods like food, clothing, etc. but does have provisions for hand-tools and footwear that could lead to increased prices almost immediately as the season starts.
Canada Border Services Agency has issued a customs notice on surtaxes on certain goods originating from the US. The order is here.
What this means in the short-term:
- Many landscaping tools, machinery, and supplies are imported from the US - retaliatory tariffs will make these more expensive.
- Tariffs could increase prices, squeezing profit margins and potentially raising service costs.
- Approximately 6% of total landscape horticultural crop value is exported to the USA (number is over 40% for greenhouse production). It is much lower in Alberta and Saskatchewan but given that 99.6% of all exports are to the US due to phytosanitary regulations around movement of soil it will impact some areas and growers very directly. It also limits are ability to import plant material from non-US sources.
- General economic un-ease, with a looming recession predicted, consumer confidence will be weak. We’ve seen in the past that economic conditions that lead to travel or food uncertainty (9/11, Covid pandemic) has resulted in greater consumer spending on home and garden supplies. A prolonged recession combined with high prices on other consumer goods could easily counteract this effect.
- Additional tariffs are scheduled to implement March 12 and April 2 as well as counter-tariffs from Canada set take place in late March. The proposed list of second round counter-tariffs includes a large variety of plant material that blankets much of the horticultural industry. The US has vowed to match an retaliatory tariffs at equal rates, meaning that stage 2 will include tariffs on US imports to Canada of plant material. We will continue to monitor listings as the issue progresses.
What Landscape Alberta is doing:
We are actively working to provide supports to members through this difficult trade dispute.
- Offering regular updates that are industry specific as new categories of goods are added to the tariff and counter-tariff lists.
- Working together with larger industry groups across agriculture and small business to tell our story and advocate for a prompt resolution, including groups like AAFC, CNLA, COHA, AGGA, CFIB and the Provincial and Federal Governments.
- Advocating to the federal government to invest tariff revenue into support programs for small businesses and consumers.
- Advocating for the federal government to exclude products essential to our industry from counter-tariff action (plants, irrigation supplies, construction equipment).
What can you do:
- Communicate! With customers, supplier, and your peers.
- Look at new supply chains, source local. Strengthen your B2B network – start with Landscape Alberta members and then related associations in the federation across Canada.
- Activate line of credit early to help manage cashflow and operations.
- Reduce large capital spending. Wait it out if you can, rent or look at alternate tariff free options.
Resources:
- Business Development Bank of Canada – Cash flow planning, financial support, supply-chain diversification, etc.
- Export Development Canada – Tariff mitigation strategies, market diversification, etc.
- Alberta Treasury Branch Tariff Hub – resources to help with business and personal impacts.
- Royal Bank of Canada Tariff Insights