Businesses in the Okanagan, Canada, are facing price hikes due to the trade tensions between the USA and Canada. Peter Simonsen, president of the BC Fruit Growers' Association and a farmer at Creek and Gully in Naramata, noted an increase in the cost of the farm's cans.
On March 4, U.S. President Donald Trump imposed a 25% tariff on all imports from Canada. In response, Canadian Prime Minister Justin Trudeau implemented retaliatory tariffs on U.S. imports. Simonsen commented that these tariffs, following weather-related challenges in B.C., will be costly for farmers. "It has been one thing after another," said Simonsen.
Simonsen highlighted that after crop losses from extreme weather, government aid might be necessary for farmers to cope with the tariffs. Many Okanagan growers, especially cherry farmers, export a substantial portion of their produce to the U.S. "We export a lot of cherries later in the season," he mentioned.
With tariffs in place, Simonsen fears reduced willingness from U.S. buyers due to the 25% price increase. "There is going to be needless inflation," he said, citing the example of increased costs for American-made cans used in cider production. While Creek and Gully primarily sell domestically, the retaliatory tariffs on essential U.S.-produced inputs like fertilizers and pesticides will impact them. "The price of inputs will be most costly," Simonsen stated.
He expressed concern that these tariffs will raise prices for Canadian consumers. Simonsen urges consumers to support local produce. "If there is a silver lining in all of this, it is that hopefully, people will realize that buying local is important. We must keep a healthy agriculture industry in Canada."
Maryse Harvey, president of the Kelowna Chamber of Commerce, noted that Kelowna and nearby areas might be more resilient compared to regions like southern Ontario and Alberta. However, agriculture, heavily reliant on U.S. trade, might be among the first to feel the tariffs' effects. A survey by the Kelowna Chamber of Commerce showed that 50% of local businesses export to the U.S. Harvey indicated that Kelowna might experience moderate repercussions from U.S. tariffs, aligning with Canadian Chamber findings.
Source: Summerland Review
