As discussions on tariffs for Canadian goods intensified leading up to the US presidential election, many in the industry anticipated a shift in trade policy. Initial skepticism has now given way to a seemingly changing reality. The US administration is moving toward increased trade restrictions, with tariffs positioned as a tool to address multiple policy concerns, including trade imbalances and border security. For Canadian flower growers, this raises uncertainty over continued access to the US market.
"Many in the Canadian floral sector are concerned about what these tariffs will mean for their operations," says Lawrence Hopman of Hopman Flower Farm Reps. "Some exporters are accepting that they may need to absorb the cost, while others are looking at alternative strategies, including new markets or shifting operations."
Lawrence Hopman
Currently, Canada and Mexico have been granted a reprieve until March, but the industry expects tariffs to be implemented in some form. A potential 25% import tax on flowers entering the US would lead to direct cost increases for retailers, who may seek alternative suppliers if Canadian exporters cannot remain competitive. Lawrence notes that some US retailers are already exploring payment structures that would require Canadian vendors to absorb part or all of the added costs.
"The exchange rate cushion that Canadian growers have relied on may no longer be sufficient to offset these changes," Lawrence explains. "In past cycles, when the Canadian dollar was at parity with the US, some businesses struggled or exited the industry because their margins were too reliant on currency fluctuations rather than sound pricing structures."
Moving production to the US?
The response from growers varies. Some are exploring whether moving a portion of production into the US could mitigate risk. Others acknowledge that exporting to the US is a privilege, not a guaranteed right, and that American policies will reflect domestic priorities.
"This is exactly what tariffs are designed to do—encourage production to move within US borders," says Lawrence. "For some, shifting operations may be a necessary step in securing long-term stability."
While there is concern about price sensitivity in the retail floral sector, Lawrence emphasizes that flowers remain a discretionary purchase. Consumers choose flowers based on experience, presentation, and shelf life rather than minor price fluctuations.
"Ultimately, the focus should remain on producing high-quality flowers that meet consumer expectations," Lawrence concludes. "Retailers will continue sourcing from suppliers who provide the best product, regardless of trade policies. The goal should always be to ensure that quality drives demand, rather than reacting solely to pricing pressures."
Matchmaker
Lawrence Hopman is the CEO of a Canada based floral marketing agency called Hopman Flower Farms. The firm acts as a matchmaker between primary floral products producers and North American mass retailers. The company also brokers the sales and acquisitions businesses in the floral sector.
For more information:
Hopman Flower Farms reps
www.hopmanfarms.com