The most recent set of U.S. tariffs is expected to halt the flow of honey from Canada into the United States, as stated by the president of the Saskatchewan Beekeepers Development Commission, Simon Lalonde. Lalonde expressed concerns over the impact of the 50 percent tariff on a variety of goods, including honey, amounting to $28 billion, which came into effect on Friday. He emphasized that Canadian beekeepers cannot bear such a significant price increase and anticipate that most U.S. honey packers will seek honey from other countries instead of Canada.
Canada predominantly consumes its own honey production, with the United States and Japan being the other major markets. Lalonde highlighted that Western Canada, particularly the Prairie provinces, is a primary supplier of honey to the United States. Approximately 15 to 20 percent of Canada’s honey, equivalent to around 12 million pounds, is exported to the U.S., posing a significant challenge for producers with the loss of this market.
Amidst the ongoing honey season, Lalonde mentioned that beekeepers are currently focused on harvesting and are closely monitoring the situation until September 8 when Prime Minister Mark Carney plans to impose retaliatory tariffs on U.S. goods. The uncertainty surrounding the duration of the trade issue could greatly impact beekeepers, Lalonde added.
Experts have indicated that Saskatchewan, primarily exporting natural resources like oil, gas, and potash, may be less affected by the recent tariffs compared to other provinces. Jim Farney from Queen’s University highlighted that the tariffs might not directly impact Saskatchewan due to its export composition, suggesting that Canadian counter-tariffs could have a more significant effect.
The Saskatchewan Chamber of Commerce expressed deep concerns about the repercussions of the latest tariffs, emphasizing potential devastating effects on certain sectors of the provincial economy. The chamber supported the federal and provincial governments’ stance against unfair U.S. demands and called for governmental support to bolster businesses in Saskatchewan.
Furthermore, local responses to the trade dispute were observed, with some provinces opting to remove American liquor from shelves. While Saskatchewan briefly followed suit before reverting the decision, one local company noted a positive shift in consumer behavior towards Canadian products. The Opposition NDP urged Saskatchewan to align with other provinces in supporting Canadian businesses and adopting procurement policies favoring local companies.
As the industry navigates the challenges posed by the tariffs, Lalonde suggested that finding new export markets for Canadian honey could be crucial. While immediate changes in honey prices domestically are not expected, exploring new avenues for honey exports could mitigate the impact of losing the U.S. market.