Trade warfare by the United States towards our Canadian neighbors continues to intensify. This unknown situation is making things more difficult for U.S. maple syrup producers. The U.S. is by far the largest importer of Canadian maple syrup. Per the Government of Canada, it buys about 60% of Canada’s yearly output. Unfortunately, the Trump administration just made it more difficult to cooperate by imposing tariffs on Canadian lumber and other goods. This move risks increasing costs to both taxpayers and agricultural producers.
In 2022, the U.S. maple syrup production was valued at over 5.8 million gallons. Back then, most of this scrumptious syrup came from our neighbor states of New York and Vermont. The Quebec Maple Syrup Producers tightly control prices and the amount of syrup produced and sold. They do this by their state owned strategic reserves backed by the government. As noted by TPG’s resident industry oracle Adam Wild, these reserves have more syrup in them than the U.S. produces in a given year. That’s a staggering number!
The effect of the tariffs is felt across the board, but it’s especially onerous when it comes to the specialized equipment required for producing maple syrup. The majority of this equipment is manufactured in Canada. Now the new 25% tariff will increase costs for American producers even further.
“If something is going up 25% or 5% whatever and you sell it at the same price you’ve been selling it at for the last five years that is going to dent our pockets,” – Kevin Keyes, Dry Brook Sugar House
The International Maple Syrup Institute has been very concerned about these tariffs. They are on a last-ditch campaign to get Agriculture Secretary Brooke Rollins to drop plans to impose them. They fear that such measures would “harm U.S. maple syrup producers and impose significant burdens on both consumers and the industry.” The USDA decided not to take action on any of the institute’s concerns. More importantly, they did admit the unprecedented glimpse into the administration’s agricultural trade policy.
Operations such as Dry Brook Sugar House in Salem, New York, are already starting to be affected by these tariffs. The impacts are really changing the way they do business. Co-owned by Kevin Keyes and his brother-in-law Bob Chambers, Dry Brook has served the local community for nearly three decades. Sitting centrally among those scenic sugar maple forests that are the pride of the New York-Vermont border, this Overlook heaven is the perfect place to make top-quality syrup.
“If the tariffs do go in place on the syrup, they haven’t actually as of today, but that can change tomorrow, so we’re going to have to raise the price based on that if they do,” – David Campbell, co-owner of Mapleland Farms
Maple syrup is now selling for $55.70 per gallon. Producers such as Keyes and Campbell confess they are concerned that mounting costs could be detrimental to their operations as well as their customers. It is the uncertainty created by these trade negotiations that puts them again in a precarious position.
Chambers lamented the volatile nature of where tariff talks may go. He noted that many farmers have hastily imported equipment prior to any potential tariffs as a short-term solution to mitigate rising costs.
“They were moving truckloads of maple equipment across the border at that time just to try to get it here before any tariffs went in place, but that’s only a short-term solution,” – David Campbell
The problem is aggravated by the reality that the vast majority of the specialized equipment used by U.S. producers is manufactured in Quebec. To that end, NPB Chair Adam Wild noted that any new tariffs would undoubtedly raise costs on American producers even more.
“Most of that equipment is being produced within Quebec and coming across. So, any added tariff would then potentially increase, if it’s 25% or whatever it is, would most likely increase the cost of that equipment for a producer,” – Adam Wild
Producers have begun preparing for large-scale amendments to active pricing structures. Campbell made clear that companies do have difficulty raising prices and in doing so, companies should strive to keep their prices equitable for consumers.
“It’s hard to raise the price to the consumer when you’re trying to give them a fair price,” – David Campbell
The volatility in trade relations has left many farmers wondering how it will ultimately trickle down to their family businesses. The unpredictability around tariffs makes it even harder for producers to operate who depend on domestic and Canadian resources just as much.
“It’s going to make it harder for production to grow with the cost of equipment and expansion going up unless there is a bigger increase in the price of a finished product. The consumer is going to get that,” – David Campbell
As both sides navigate this complex economic situation, U.S. maple syrup producers remain hopeful for a resolution that does not compromise their livelihoods or burden consumers with higher prices.
