Almost half of Canada’s floricultural production is destined for the United States. So, growers and wholesalers in Canada are a bit concerned. If Trump carries out his threats and indeed imposes a 25% import duty starting January 20, Canadian trade will suddenly become 25% more expensive for the American market, making it much less competitive.
The fact that the US dollar has become 10% stronger against the Canadian dollar in the last 6 months, is not enough to compensate for the extra duties. The market disruption caused by the threat is far from ideal. What price should you set now for the upcoming Valentine’s, Easter, and Mother’s Day sales? This uncertainty and fear of reduced trade is exactly what Trump is after.
With these measures, he aims to force Canada and Mexico to better secure their borders. He is convinced that America’s immigration, crime, and drug problems are caused by weak border policies in its neighboring countries.
