Society of American Florists (SAF) held a Roundtable discussion on the anticipated tariffs that have been promised by President-elect Trump’s administration. Since this was a topic of discussion in my private Facebook group as well, I offered to take some notes and I am sharing them for you here.
The November Ultimate Roundtable, was open to all SAF members, and if you’d like to watch the replay of the meeting and attend future meetings, you can become a member here! (I just joined this week and they are currently offering 2 months of free membership so you would not make a payment until January.)
SAF Senior Lobbyist Joe Bischoff, Ph.D. started off the discussion to provide insights on:
- Proposed tariffs and environmental policies
- The status of the Farm Bill, renewal of the GSP, and disaster funding
- How to prepare your business for potential policy changes
- How SAF members can advocate for a stronger future for the industry
Plus, SAF Chief Economist Charlie Hall, Ph.D., talked about the latest economic trends as you prepare for 2025.
Please note: this is not an opinion post. These are my notes from the call:
- Indications are that tariffs on imported goods are to be expected in a rapid fashion.
- 10-20% “general tariffs” across the board; 60% tariff on China; also 25-100% tariff on Mexico.
- Could they really do this? Yes, we should expect they are not just serious, but deadly serious about tariffs on imports. (During Trump’s last administration tariffs went up.)
- Last time, they wrote checks to farmers due to the trade war created by the tariffs–they’ll presumably do that again, although that doesn’t help us in the retail market.
- We should plan to get hit with some tariffs on imported products for our industry. We could know in the first 100 days or so.
- The incoming administration plans to use the tariffs to pay for other things (aka “other priorities”, which may include tax cuts for corporations). This is one reason why it seems inevitable that they will be imposed quickly.
- GSP (Generalized System of Preferences) allows roses to be imported duty free, but tariffs could possibly still be added with the new policies.
- Will flowers become less affordable if the retail price of goods overall goes up? Yes, that could be a risk. Since tariffs are inflationary, the cost of living will increase overall for folks, and that may make it harder for some people to afford certain “luxury” items. (For context: anyone who buys imported goods (for example, anything you buy at Target or Walmart) will experience increased prices–the estimates are around $2600-3900 per household in additional tariffs per year. This could reasonably result in less disposable income for many people, though impacts may not be felt for 6-12 months after tariffs are imposed.)
- Equipment and technology–not just the growing of the flowers themselves–also affect the cost of flowers.
- Regarding immigration: We don’t know how many people will be deported. If they are aggressive we will see it in flowers and every sector (restaurants, hospitality, agriculture, etc.).
- Build relationships with your members of Congress so they can become an advocate for your business.
To sum it up, the word of the day was “uncertainty”, as Amanda of SAF put it.
My Takeaways
Should I plan to purchase a few extra cases of vases? It’s probably a good idea to buy a few things I know I’ll use in 2025. Whether they’re coming from China or Mexico, imported vases will likely be subject to additional tariffs next year.
Should I invest in electronics or equipment upgrades now? I think this might be a smart decision to buy a new computer before January instead of waiting until the Spring.
Should I panic? No. I spoke with a friend with wholesale experience who reminded me that tariffs have been applied and adjusted on imported flowers many times over the years. So while the price of everyday items will likely be up and there will likely be an increase to the wholesale cost of certain flowers and supplies, it’s not unheard of.
We will wait and see how and when these new tariffs go into place–but I think we should plan for them now when writing quotes for the upcoming wedding season. Whether that means adding $5-10 onto each centerpiece or initiating a clause regarding market fluctuations in pricing, it would be wise to plan on how you’ll address the adjustments when/if it becomes necessary.
In the meantime, we can keep buying American Grown Flowers and support your local farmers!
And support American made products like Floral Genius, for example.
I’m rooting for you and your business, Floralpreneur®!–even in times of uncertainty there is good work to be done! There are always some bumps and twists and turns in the road for any business. Adapting and planning for the future is not always easy and rarely predictable, but there can be a sense of strategy and acceptance if you’re willing to lean into the next best step.
If I can be of any help, please reach out and let me know.
FYI if you want to attract better customers without posting on social media every day, join me for my upcoming Marketing Workshop for Florists! CLICK HERE for all the details and use the Promo Code: SAVE57 to get a discount til Saturday!
xo. -Alison Ellis
