US/Canada tariff war could affect local maple syrup farms
SALEM, N.Y. (NEWS10) — The tariff war between the US and Canada could affect local maple syrup producers because most of the machinery used to make the product comes from Canada.
A lot of effort, money, and machines go into making Maple Syrup at Dry Brook Sugar House in Salem. “Our evaporator, our tubing, our reverse osmosis, our vacuum pumps. Everything you can imagine in the maple industry that we own comes from comes from Canada” said part-owner Kevin Keyes. “A piece of equipment could be $30,000 versus reverse-osmosis would be $120,000.”
And that’s the reason Keyes says the US/Canada tariff war will affect the local Maple Syrup industry. President Trump imposed 25% tariffs on Mexican and Canadian imports. His main motivation? Allegations that illicit drugs such as fentanyl continue to enter America via Mexico and Canada despite agreements reached last month to address the issue. According to ABC News, however, less than 1% of fentanyl was seized at the Canadian border, with its Prime Minister calling Trump's allegations false.
“This is like a tit-for-tat deal. I'm gonna tax you because you're gonna tax me" said Keyes.
In retaliation, Canada placed a 25% tariff on $30 billion worth of goods. Tariffs on an additional $125 billion worth of products will take effect in 21 days. While Dry Brook says it won’t affect them immediately because they own their equipment, the pinch may come later on:
“I hate to say it but when you talk to the companies that supply you your materials they say to pass it on to the consumer. Well, how much can the consumer take?" said Keyes.“It’s my feelings… is that it could slow down the buying" Keyes worried.
For now, Dry Brook isn't increasing the prices of their Maple Syrup, but if operating costs go up too much due to the tariffs, they may have to.