We are carefully following the announcement of a 25% tariff on Canadian and Mexican imports, and Canada’s retaliatory tariff. Our team is assessing the impact of these tariffs on our products. The Canadian tariffs pose the greatest risk to cost volatility for AgriHub related products. From the initial $31 billion list of affected goods, very little impact was anticipated within our supply chains. We are actively planning to resource, substitute or adjust logistics and deliveries to take items from non-tariff impacted suppliers and manufacturers.
For items that we cannot avoid paying a tariff, your orders of these items will incur the tariff surcharge (today 25%) and these costs will be added to the price of any items quoted, ordered or contracted, but not yet shipped.
These undesired costs are being passed along, and only when not avoidable, on a dollar-for-dollar basis. If, and as, these tariffs change, the surcharge will automatically change as well. We all hope this undesired cost will be fully mitigated through our supply chain team’s efforts and/or through our government’s negotiation to eliminate this undesired trade war.
As we secure opportunities to eliminate the threat of tariffs through substitutions of like product, or through adjusting logistics to assure no tariff is applicable, we will make these options available to you to decide if you want a substitute or if you prefer to stay with your specified items.
A larger potential tariff list from Canada remains an unknown that could result from this trade war escalating. This is causing uncertainty about additional affected products. Our commitment to a diversified supply chain should help to mitigate costs and risks during these uncertain times. We will provide further communication on new tariffs or escalation of this trade war as it impacts our supply chains. Your business success is essential to us. We are dedicated to navigating these political challenges together, and open communication is key. Please contact your account representative or our management and finance team with any questions or concerns.