The most recent set of U.S. tariffs will effectively halt the import of honey from Canada into the United States, as stated by the president of the Saskatchewan Beekeepers Development Commission. Simon Lalonde expressed concerns about the significant 50 per cent tariff imposed on a range of goods, including honey, totaling $28 billion, which took effect on Friday. Lalonde emphasized that this tariff is unsustainable for Canadian beekeepers, leading most U.S. honey packers to seek honey from other countries they import into the U.S.
While the majority of Canada’s honey is typically sold domestically, the United States and Japan are significant export markets. Lalonde highlighted that Western Canada, particularly the Prairie provinces, is the primary supplier of honey to the United States. Approximately 15 to 20 per cent of Canada’s honey production, equivalent to about 12 million pounds, is exported to the U.S., posing a substantial challenge for producers with the loss of this market.
Beekeepers are currently in the midst of the busy honey season, focusing on harvesting. The industry is awaiting developments on September 8 when Prime Minister Mark Carney has announced retaliatory tariffs on U.S. goods. The uncertainty surrounding the situation is crucial for beekeepers, and the resolution of this trade issue will significantly impact them.
According to Jim Farney, Director and Stauffer Dunning Chair at the School of Policy Studies at Queen’s University, Saskatchewan is expected to be relatively less affected by the recent tariffs due to its major exports of natural resources like oil, gas, and potash, which have been spared from the trade dispute. The Saskatchewan Chamber of Commerce has expressed deep concerns about the repercussions of the latest tariffs, emphasizing the devastating effects on certain sectors of the local economy.
Amid the trade tensions, a call to support local Canadian products has emerged. One Saskatchewan company experienced a positive impact from the decisions of other provinces to remove American-produced liquor from their shelves. The Saskatchewan Opposition NDP has urged the province to follow suit and remove American alcohol from liquor stores, advocating for a procurement policy favoring Canadian companies for government contracts to protect local jobs.
In the face of these challenges, the honey industry may not witness immediate changes in domestic honey prices this season. Nonetheless, Canadian producers are exploring alternative export markets to mitigate the impact of losing the U.S. market. Lalonde suggested that an increase in honey consumption by Canadian families could help offset the loss of the U.S. market.