Dutch flower exporter expects U.S. tariffs to cost it millions

Plant and flower export company Holex Flower is expecting to miss out on 10 million euros in revenue due to the 15 percent import tariff from the United States that took effect on Thursday. The company from De Kwakel, Noord-Holland, earns half of its revenue from exports to the U.S. Director Paul Hoogenboom believes this will mainly result in fewer tulips being exported to the country.

Hoogenboom added that the consequences of the tariffs are hard to predict, but he fears that Americans will purchase fewer tulips from supermarkets as a result. He expects prices in the U.S. to rise by about 25 percent, partly because the dollar has dropped significantly in value compared to the euro. “That could certainly mean a 15 percent drop in revenue from the U.S.,” he said. Currently, his revenue from the U.S. amounts to 65 million euros.

However, Hoogenboom does not think that this will lead to financial issues for the company. “We’ve had excellent results in recent years.”

Not all flower traders will be equally affected by the tariff. The Association of Wholesalers in Floricultural Products (VGB) reported last month that only 3 percent of flower and plant exports go to the U.S. According to the industry organization, the measure mainly impacts specialized companies.

“I am not noticing any panic within these companies. The special range will continue to be bought by wealthy Americans,” said VGB director Matthijs Mesken, referring to wedding and funeral arrangements. He believes companies may be able to offset lost revenue by increasing exports to other countries.

Due to the developments in the U.S., Holex Flower will focus more on other markets, like Canada, South Korea, and China, Hoogenboom stated. “There are many emerging economies receiving more flowers, and that will hopefully help offset part of the loss.”