Relief for TRADE TENSION
BY KARINA SINCLAIR
A s we recently marked the five-year anniversary of the arrival of COVID-19, the term “unprecedented challenges” comes to mind. The series of lockdowns and supply chain disruptions rocked the nation, and the threat of the unknown left many businesses struggling to stay afloat. Although landscape companies and garden centres enjoyed a surge in business overall — given how social distancing sparked a desire for backyard sanctuaries and plant parenthood — it’s taken all this time for the economy to settle down again. And then came a trade war, once again initiating unprecedented challenges sooner than we’d hoped. As we grappled with the on again, off again threat of tariffs in the first quarter of 2025, many professionals in the landscaping and horticultural sectors wondered how these disruptions would affect their livelihoods. Even if not directly involved in foreign trade, landscape- related businesses would potentially face higher cost of supplies, reduced availability of materials and tools, scaled back or cancelled projects, overstock of live plant goods, political unease and other impacts yet unknown. The “elbows up” rallying cry of “Team Canada” inspires patriotism, but the reality is business needs to continue. Landscapers have a short window of time for the bulk of their work, and any disruption for an unprepared business owner could spell financial struggles, layoffs or even full closures. Fortunately, the Canadian federal and provincial governments offer several measures to help businesses boost resiliency and competitiveness. These measures offer financial assistance, training opportunities and risk management tools to navigate economic uncertainty. We bring you an overview of these programs, drawing from recent announcements by the Department of Finance Canada, as well as Agriculture
and Agri-Food Canada (AAFC), which helps create the conditions for the long-term profitability, sustainability and adaptability of the Canadian agricultural (including horticultural) sector, while mitigating risk and growing both the domestic and global marketplace. Staying informed about these programs can help businesses survive the impacts of trade tensions and position themselves for future growth. Trade Impact Program On March 7, 2025, the Department of Finance Canada announced the launch of the Trade Impact Program through Export Development Canada (EDC). The program, built on existing supports, is intended to assist exporters in navigating the challenges posed by potential tariffs and trade interruptions. The Hon. Rechie Valdez, minister of small business, said: “To Canadian small businesses: You’ve built this country’s economy. You keep our communities strong. And we will have your backs.” This is important for Canadian growers of floriculture and nursery stock who export live goods with soil. It’s been difficult to determine whether U.S. tariffs would be applied to plants. At times, the Trump administration was going to apply tariffs to all goods from Canada. That quickly changed to temporarily exclude products under the CUSMA (or USMCA as it’s known in the U.S.) trade agreement. By the time this goes to print, the situation could have changed again. The Trade Impact Program will deploy $5 billion over two years to help businesses explore new markets and manage economic uncertainties resulting from the tariffs. The program addresses issues such as losses from non-payment, currency fluctuations, cash flow constraints and barriers to expansion through the following means. continued >
MAY 2025 | 21
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