"We are in this together." It's a phrase that echoed throughout the pandemic—and now, it's making a return as U.S. tariffs take center stage. Last week was hectic, with updates on tariffs shifting almost daily. What does this mean for the floral industry?
Over the past few days, several insights and interviews have been shared, and several takeaways have emerged.
First, the uncertainty has caused significant stress across the industry. It was advised to take a moment to step back and assess what these developments mean for your specific business. Keeping communication open with both suppliers and clients was also emphasized as a crucial step.
In terms of cut flowers, the U.S. remains dependent on imports. Domestic production is not sufficient to meet demand, and many flowers simply can't be produced in the U.S. While a temporary stagnation in consumer spending is expected due to general hesitancy, overall demand for flowers is likely to persist.
As for pricing, many have pointed out that the impact may not be as dramatic as it initially sounds. The tariff percentage is applied to the cost price, not the final retail price, so flowers will only become slightly more expensive. However, further increases are expected for sleeves and other floral supplies. In the end, flowers will be a little more expensive for the consumer—but will this halt them from spending? That's the question.
It is also striking that many are drawing parallels with the pandemic period. But there's a key difference: shops are still open. "We are in this together" is a phrase that rings true once again—not just for companies exporting to the U.S., but also for importers, domestic growers, and other U.S.-based businesses that will be affected in one way or another.
Just like during the pandemic, there's hope that people will once again find comfort in flowers as a form of self-care during difficult times.
Sources: The impact of the U.S. tariffs on the floral industry: Part 1, Part 2, Part 3