Trump's Tariffs Devastate Finger Lakes Farms and Businesses

Strategic Insights -

Finger Lakes farmers and small business owners are fighting for survival as the US trade war with Canada continues to wreak havoc on their livelihoods. U.S. Senator Chuck Schumer has been a vocal advocate for an end to the damaging trade war, which he claims has resulted in a tax increase on Upstate NY. The senator met with farmers and business owners in Yates County to discuss the impact of Trump's tariffs, which are driving up costs and causing sales to plummet.

Key Takeaways:

  • Finger Lakes farmers and small business owners are on the frontlines of Trump's destructive trade war, with costs skyrocketing and sales plummeting due to the loss of Canadian tourists and export sales opportunities.
  • The tariffs have led to a "tax increase" on Upstate NY, with local farms and businesses unable to afford the chaos and uncertainty caused by the trade war.
  • Senator Schumer has promised to force a vote to end Trump's trade war with Canada when the Senate returns, citing the devastating impact on the Rochester-Finger Lakes' economy, tourism, small businesses, and local jobs.
  • The loss of export sales to Canada and Europe has created a ripple effect on the New York wine industry, resulting in a glut of unsold wine and wine grape juice.
  • Local farm wineries are experiencing a steep drop-off in Canadian tourist visits, with one winery reporting that only one single Canadian customer has visited their tasting room so far this year.
  • The decline in worldwide demand for US wine has resulted in an estimated 6000 tons of valuable grape juice, equivalent to 360,000 cases of wine, being left unsold.
  • The New York State brewing industry relies heavily on barley and malted barley from Canada, and the tariffs are raising the cost of making beer substantially, even for the smallest of breweries.
  • Craft brewers are warning that increased tariff costs could undermine their profitability or even their continued operations.
  • Northern Soy Inc, a 50-year-old production facility in Rochester, is facing uncertainties and potential new costs due to the cross-border tariffs with Canada.

Statistics:

  • A staggering 1.5 million fewer Canadian travelers crossed the NY-Canada border since Trump took office, an overall 22% decrease.
  • Local farm wineries in the Finger Lakes region are expecting up to 6000 tons of valuable grape juice, equivalent to 360,000 cases of wine, to be left unsold due to the decline in worldwide demand for US wine.
  • Craft breweries in New York State are warning that increased tariff costs could undermine their profitability or even their continued operations.

Sources:

  • Schumer Press Release, United States Senator for New York Charles E. Schumer.
  • NYWGF (New York Wine & Grape Foundation).
  • Wine America.
  • Northern Soy Inc.
  • New York State Brewers Association.
  • Anthony Road Vineyards.
  • Fox Run Vineyards.
  • Simmons Vineyard.
  • Scout Vineyard.
  • Hermann J. Wiemer Vineyard.
  • Bully Hill Vineyard.
  • Iron Tug Craft Brewery.