Following the U.S. presidential election victory of Donald Trump, apprehensions have surfaced among Nova Scotia apple producers regarding his campaign's proposal to implement a 10 percent tariff on all imported goods. Emily Lutz, the executive director of the Nova Scotia Fruit Growers Association, highlighted the U.S. as their primary export destination. The association has explored alternative markets as a precaution and to diversify, yet the tariff proposition has raised concerns about future expectations.
Lutz, who assumed her role post the initial Trump administration, expressed worry over the potential shift from rhetoric to reality, which could affect not only the export of apples but also value-added products like juice and pies. A tariff could lead to a decrease in U.S. sales and a consequent reduction in orders. Nova Scotia's apples, especially the Honeycrisp variety, are renowned for their quality, which sets them apart in the U.S. market.
Should the market contract, it could exert pressure on prices and the province's growers, necessitating the exploration of new markets. However, transitioning to markets beyond the U.S. involves challenges, including increased costs, potential quality degradation during transport, and logistical uncertainties. Vietnam has emerged as the second-largest export market for Nova Scotia apples, but reaching it and other distant markets entails higher expenses and quality risks due to prolonged shipping durations.
Lutz mentioned that the growers' concerns began before the election, with Trump's tariff discussions inducing uncertainty. She emphasized the desire to avoid a trade conflict, given the substantial volume of apple exports from the U.S. to Canada. The Canadian government's support is sought by growers in case of tariff implementation, aiming to focus on their expertise in apple cultivation and marketing amidst external political and economic influences.
Source: SALTWIRE