Handfuls of extracted peat | Premier Tech
AmericanHort, in collaboration with several industry associations, has submitted five letters to Congress and the Administration expressing significant concerns regarding the potential implementation of a 25% tariff on Canadian goods, specifically targeting sphagnum peat moss.
Potential Canadian Tariff Economic Impacts
Sphagnum peat moss is a critical production component in the horticultural and agricultural industries. It serves as a primary base for potting soil and growing media and plays an indispensable role in the production of vegetables, fruits, ornamentals, and mushrooms.
“Peat moss is a vital input to our member’s operations and the horticultural industry,” says Matt Mika, Vice President of Advocacy & Government Affairs at AmericanHort. “With production costs already high, imposing additional costs would further drive up input and operational expenses, placing a significant financial strain on our industry.”
The proposed tariff threatens to increase production costs for horticulture growers nationwide, potentially resulting in increased consumer prices of certain food products and greenhouse plants.
The letters highlight the economic impact of such tariffs. The North American sphagnum peat moss industry is predominantly based in Canada, with 85% of its production exported to the U.S. This accounts for 96% of American sphagnum peat moss imports.
The U.S. horticultural industry, potentially impacted by the proposed tariff, contributes approximately $527 billion annually to the U.S. economy. Given the limited commercially viable U.S. peatlands, growers rely heavily on imports of peat-based products. The imposition of tariffs could severely impact national food security and economic stability.
Sphagnum Peat Moss Tariff Exclusion Requested
In the letters, AmericanHort urged to exclude sphagnum peat moss and peat-based products from any proposed tariffs or grant a “critical mineral” status, thereby reducing the tariff rate to 10%.
AmericanHort also noted that recognizing sphagnum peat moss as a critical resource is essential for maintaining horticultural stability, economic competitiveness, and national food security.
The five letters were addressed to:
- The House and Senate Agriculture Committees
- The House Ways and Means Committee
- The Senate Finance Committee
- President Trump
- Vice President Vance
These letters were signed by AmericanHort, the American Mushroom Institute, the International Fresh Produce Association, the National Association of Landscape Professionals, and the National Christmas Tree Association.
AmericanHort looks forward to working with Congress, the Committees of jurisdiction, and the Trump Administration if these potential tariffs are implemented in the horticultural and agricultural industry.
