US-Canada Tariff War May Affect Local Maple Syrup Industry
The Impact of Tariffs on Maple Syrup Production
A lot of effort, money, and machines go into making Maple Syrup at Dry Brook Sugar House in Salem. “Our evaporator, our tubing, our reverse osmosis, our vacuum pumps. Everything you can imagine in the maple industry that we own comes from Canada” said part-owner Kevin Keyes. “A piece of equipment could be $30,000 versus reverse-osmosis would be $120,000.”
The Tariff War
President Trump imposed 25% tariffs on Mexican and Canadian imports, citing allegations that illicit drugs such as fentanyl continue to enter America via Mexico and Canada despite agreements reached last month to address the issue. According to ABC News, however, less than 1% of fentanyl was seized at the Canadian border, with its Prime Minister calling Trump’s allegations false.
The Consequences for Maple Syrup Producers
“This is like a tit-for-tat deal. I’m gonna tax you because you’re gonna tax me” said Keyes.
In retaliation, Canada placed a 25% tariff on $30 billion worth of goods. Tariffs on an additional $125 billion worth of products will take effect in 21 days. While Dry Brook says it won’t be affected immediately since they own their equipment, the pinch may come later on:
Passing on the Cost to Consumers
“I hate to say it but when you talk to the companies that supply you your materials they say to pass it on to the consumer. Well, how much can the consumer take?” said Keyes.“It’s my feelings… is that it could slow down the buying” Keyes worried.
Uncertainty Ahead
For now, Dry Brook isn’t increasing the prices of their Maple Syrup, but if operating costs go up too much due to the tariffs, they may have to.
Conclusion
The US-Canada tariff war may have unintended consequences for local maple syrup producers, including increased costs and potentially higher prices for consumers. As the situation continues to unfold, it remains to be seen how the industry will adapt and respond to these changes.
FAQs
Q: How will the tariffs affect maple syrup production?
A: The tariffs may lead to increased costs for maple syrup producers, potentially passed on to consumers.
Q: Will the tariffs affect the quality of maple syrup?
A: No, the tariffs are unlikely to affect the quality of maple syrup production.
Q: How will the industry adapt to these changes?
A: Maple syrup producers will need to adjust to the new reality, potentially by increasing prices or finding new suppliers for equipment and materials.
