Trump’s import tariffs threaten US greenhouse vegetable industry

USA – The U.S. greenhouse vegetable industry is facing significant challenges as President Donald Trump enforces new 25% import tariffs on steel and aluminum starting March 12, 2025.

These tariffs are expected to drive up costs for greenhouse structures, directly impacting vegetable growers who rely on controlled environments for year-round production.

This move follows previous tariffs imposed during Trump’s first term, some of which were later reconsidered. At that time, Dutch greenhouse construction was exempt, but now, Trump has declared that no such exemptions will be granted.

Industry experts warn that these tariffs could disrupt fresh produce supply chains. Greenhouses are vital for U.S. vegetable production, particularly in states like California, Arizona, Texas, New York, and Florida, which account for the majority of greenhouse vegetable acreage and sales.

Greenhouse vegetable production in the U.S. is valued at approximately US$280,000 per acre, with California leading in both acreage and revenue.

“The impact of these tariffs is expected to drive up costs across the entire supply chain,” said Henk Verbakel of Havecon, a company that builds greenhouses in Canada and the U.S. “Steel and aluminum are significant cost components, and when tariffs are imposed, it will certainly increase expenses.”

He estimates a potential rise of 5 to 10 percent in total greenhouse construction costs, which could lead to higher prices for fresh vegetables.

Some growers may absorb the financial burden, while others might pass the costs onto consumers. Others could shift to domestic suppliers, though this may not be an immediate solution given existing market constraints.

“There is no signal that there would not be enough steel in the U.S., but the question is at what price,” noted Ruud van Aperen of Growtec.

The European Commission has already responded to Trump’s announcement. Ursula von der Leyen addressed the issue on social media, stating, “I deeply regret the U.S. decision to impose tariffs on European steel and aluminum exports. The EU will act to safeguard its economic interests. We will protect our workers, businesses, and consumers.”

Meanwhile, greenhouse projects in other countries are making headlines. North Korean leader Kim Jong Un recently inaugurated what state media called the “largest-ever greenhouse farm.”

The facility, located near the Chinese border, spans over 1,100 acres and is described as part of a larger regional development effort to enhance food security.

The site reportedly includes advanced irrigation systems and climate-controlled greenhouses designed to boost vegetable production.

The greenhouse farm’s unveiling coincides with diplomatic efforts to attract investment from China, North Korea’s closest ally and key trade partner.

Analysts suggest that the timing of this announcement signals North Korea’s efforts to project economic resilience despite international sanctions.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.