diachronic context and industry responseDuring President Trump ’s previous term , similar measures were announce and finally follow through . However , at that time , Dutch greenhouse construction and facility were exempt from the tariffs .
" At that time , he saw the consequences , and European greenhouse construction was not sham by the duty , " recalls Annie van de Riet , chairwoman of the Dutch greenhouse industry body AVAG .
Now , Trump says he will absent all exemptions from 2018 . Annie points out that March 12 has not yet make it . " There are still a few calendar week to negotiate . " The Dutch glasshouse construction lobby is working through VNO - NCW , but in the adult impression , their influence is limited .
Lambert van Horen , Food & Agri – agri - gardening specializer at RaboResearch , believes that Trump ’s current actions are mainly a negotiation tactic rather than a deliberate economic insurance policy . " From a general economic perspective , tax everything is not a saucy insurance . It repel up inflation in the U.S. Trump himself , likely advised by economic expert , seems to recognize this . That ’s why he is now imposing more targeted duty . "
Exact wallop on costs"Steel and Al are significant cost components , and when tariffs are imposed on these materials , it will certainly increase cost , " say Henk Verbakel of Havecon , a party that construct extensively in Canada and the U.S. " However , other components and travail also make up a tumid portion of cost . It ’s difficult to determine the exact impact , but it could be around 5 to 10 percent . On the other hand , four years ago , the dollar exchange rate was at 1.20 – that also has an effect . "
Domestic pricesThe total effects of the new policy are complex because not all greenhouse builders produce their own materials . " Those that do , outside the U.S. , will likely feel the import tariffs the most " , predicts Lambert . " glasshouse builders who purchase structures may start frequent around . Instead of choose a Dutch provider , they might see an American one . If Trump ’s determination goes through , it could lead to duty period in the supplying chain of greenhouses . " And even local glasshouse construction in the U.S. may be affected , as the price of domesticated steel could also rise .
In the EU , steel quality is gamey , according to Peter of Meteor . Meteor uses coated steel . " European society are more advanced in coating technology than those in the U.S. " Meteor and its customers favor better - timber steel . " Our new MS-150 offer the late protection for our refinement gutters . With increasing disease pressure and the more intensive use of disinfectants and cleaning agents , there was a pauperism for this . This horizontal surface of quality can only fall from the EU ; it is not produced in the U.S. " However , he also is assured company that buy U.S. steel will also end up make up more if this go away through .
However , when it ’s about timbre , it ’s always a debate . For example , a US greenhouse constructor US says one of its standout features is its domesticated sourcing . " All of our steel is sourced in the U.S. There are a few components , like motors , that we have to source elsewhere , but the gumption of our structure comes from American steel . That ’s a self-aggrandizing pot for quality and longevity . "
Also , gutter producer Growtec often works with locally produced blade for the yield of their gutter . " We also buy the majority of the steel for our projection in the US in the US , " says Ruud van Aperen . There is enough product available there for the time being . " There is no signaling that there would not be enough – but the question is at what damage . With these ontogenesis , it is expected that this cost will also increase . "
potential chance and market shiftsIn the short term , the mentality remains unsealed . Annie note : " Trump ’s announcement contributes to this uncertainty , but geopolitics are already explosive . " Lambert observes the same . " precariousness is never good . Constantly worrying about what Trump will do next is the big part . It affects investment decision . "
Peter from Meteor acknowledge the impact of " all these order " on the global grocery . " As the horticulture industry , we have to deal with it . " Was he dismayed ? " Yes , because it involves serious amounts of money . But also , not really . This protectionism was wait . It contradict his campaign hope of making day-after-day life flashy . "
However , the glasshouse itself is not the biggest cost component in greenhouse land . " A greenhouse today survive about 30 - 35 years . In terminal figure of operational price , it is not the most meaning expense . But one thing is clear : follow through these tariffs will not make steel sleazy . "
doubtfulness over tariff scopeMuch stay unsettled . " Will the tariff apply to cutting materials or finished products ? " wonders Henk Verbakel . " During Trump ’s former full term , it only touch semi - ruined ware , not work on components . " The sector hop for the same scenario now because one thing is sure : incertitude benefits no one . " U.S. customers will expect to see what happens , and even Mexican and Canadian client will seek more uncloudedness . "
Another question is whether additional tariffs will follow . Despite the cost of production rising in the industriousness , the before announced duty on imports of fruit and vegetables from Mexico and Canada could further local U.S. yield , potentially benefiting the U.S. greenhouse building industry . One thing however is sure , and that ’s what also strangles many people : either agency , food costs in the US , a state that ’s been struggling with increasing ostentatiousness over the last few years , are to increase further with all import duties .
NegotiationsNegotiations remain potential until March 12 . For now , the greenhouse structure sector will have to operate under uncertainty , according to the Rabobank medical specialist . " The current risk will translate into prices . nursery builder will either ingest the risk in their pricing or go it on to investor . " He also notice that the dollar commutation rate has already surface in recent months . " For those thinking in euro , this partially countervail the impact . For those engage topically in dollars , it may prompt businesses to reconsider how and where they source materials . "
Peter , like Lambert , urges people not to panic . Greenhouse builder KUBO expresses a similar thought . They refer to Trump ’s former full term and caution against reason out too quickly . In 2018 , an exemption for European sword was finally grant . " Given the current want of clarity on the compass of these new measure , it is advisable to expect further item before delineate stopping point or taking unnecessary action . We are closely monitoring developments and stay in dialogue with relevant stakeholders to safeguard the interests of the sector , " say Wouter Kuiper from KUBO .
For containers already en road , Peter hope they get before March 12 . For those yet to be shipped , arranging are being made with customers as part of the ordering physical process . Peter reason : " Trump is a negotiator . And this is part of it . With Trump , things are never tedious . "
Optimistic?Beyond Trump ’s policies , the Dutch greenhouse building sphere faces other uncertainties . Yet Annie remain affirmative about the time to come . " The longsighted - full term prospect is very cocksure . There is strong interest in healthy , sustainably grow food . " Dutch glasshouse toy a crucial character in this course . More and more harvest are considering , or have already switched to , covered cultivation . " This keeps the overall sentiment positive . Our sphere impart to sustainability and offers solutions for mood change . " Lambert agrees .
On behalf of the European Commission , Ursula von der Leyen has also reply — on X. She has promised a European reception to the newly announced U.S. signification duty . " I deep repent the U.S. decision to visit tariffs on European brand and aluminum exports . The EU will act to safeguard its economic interest . We will protect our workers , concern , and consumers . "
© FloralDaily.com/Arlette Sijmonsma
