Dutch greenhouse builders hit hard by U.S. steel and aluminum tariffs

Dutch greenhouse builders are being hit hard by U.S. import tariffs on steel and aluminum. Clients are canceling orders, and greenhouse builders are securing far fewer new contracts in the crucial American market, according to Annie van de Riet, chair of AVAG, the trade association for the Dutch greenhouse construction and installation sector. Atrium Agri, a consortium that includes greenhouse builders, has seen several projects canceled or put on hold.

In addition to the 50 percent tariffs on steel and aluminum, greenhouse builders are also affected by tariffs on Chinese goods. Most of the glass used in greenhouses is imported from China.

Steel, aluminum, and glass are key building materials for greenhouses, and their rising costs due to the tariffs are causing delays. According to Van de Riet, the tariffs generally make building a greenhouse about a quarter more expensive, causing clients to hesitate before signing contracts.

She added that uncertainty around the tariffs also plays a role, including how long they will apply, which tariffs have to be paid, and whether the European Union and the U.S. will reach new agreements. “Because of that uncertainty, activity has virtually come to a standstill. If you don’t know how much you have to pay, it’s a deterrent.” According to her, the entire supply chain is being affected by the problems.

The issues are causing greenhouse builders to miss out on dozens of millions of euros, said Van de Riet. Before the tariffs, the U.S. was among the top five most important markets, as the country increasingly aims to be self-sufficient in growing vegetables, fruit, flowers, and plants.

Greenhouse builders are now looking for other markets, such as the Middle East and South America. How this will play out remains to be seen, but Van de Riet does not expect companies to run into serious trouble. “There isn’t a single area where they aren’t active. Dutch greenhouse builders are involved in the construction of 80 percent of all greenhouses.”

The U.S. remains an important market for Atrium Agri, which, despite the setbacks, still has ongoing American projects, said CEO Marck Hagen. “It is difficult right now, but everybody will become accustomed to the tariffs in a few months, and I expect more projects at that time.”

Due to the tariffs, Atrium Agri decided to assemble greenhouse parts in the U.S. Because the consortium now has fewer U.S. projects, Hagen says there is more time to focus on projects elsewhere, for example in Abu Dhabi.