Tariff pause prolongs uncertainty in organic markets

Tariff pause prolongs uncertainty in organic markets

Organic imports from Canada continue to face strong headwinds from potential tariff action. The proposed 25% tariff on Mexican and Canadian goods has been delayed by 30 days, which for many organic market participants, extends the uncertainty.

This uncertainty is a persistent roadblock for deal making, as risk-averse Canadian sellers avoid losing on transactions with US-based operators. Buyers are equally keen on avoiding steep price increases, which is forcing them to add freight costs for alternative sources.

The minor shift in trade flows has added some volatility to organic markets, firming prices as we move into 2025. Policy changes will be an ongoing risk and opportunity for organic markets in the Trump administration. 

The USDA will not be immune to the chaos unfolding throughout the US government. Funding sources vis-à-vis the USDA, such as the Agricultural…

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