News » 27.05.2025 - How 2025 policy shifts are reshaping the floral industry
In a special episode of The Bloom Show's Blooming Alert Series, Sahid Nahim hosted Jennifer Diaz, President of Diaz Trade Law, and Santiago Gomez de la Torre, President of Airglades, to unpack the shifting world of flower tariffs and their ripple effects across the floral industry. This episode, part of the show's ongoing Tariff Series, was rich with insights, data, and actionable guidance for importers, growers, and logistics professionals navigating uncertain waters in 2025.
A chaotic landscape—and why it matters
Jennifer Diaz, a 20-year veteran in customs and international trade law, set the stage with a powerful summary: this world is "dynamic, psychotic, and addicting." It involves 47 federal agencies, constant policy changes, and surprise updates that can drastically alter costs overnight.
Sahid emphasized the show's mission, "By the floral industry, for the floral industry." This means tackling hot-button issues like tariffs with trusted experts and offering clarity amid chaos.
Key trade stats: Who's shipping flowers to the U.S.?
Jennifer came prepared with fresh U.S. Census Bureau trade data for Chapter 6, which covers all things floral. Colombia remains the top exporter to the U.S., accounting for 41% of imports so far in 2025, up from 38.29% in 2024. Ecuador has moved up to second place with 18% of imports. Canada, despite being second in 2024, has dropped to third at 17%. Meanwhile, China, which held 2.44% or $88.7 million as of 2024, has imported only $22 million year-to-date in 2025.
Canada's volume is bolstered by indoor plants, trees, and shrubs—not just fresh-cut flowers.
Free Trade Agreements (FTAs): A floral advantage
One standout insight? 100% of flower imports from Colombia and Canada utilize FTAs, thanks to the simplicity of tracking origin for a single-ingredient item like flowers. Unlike apparel or electronics, it's easy to prove where flowers are grown.
However, Ecuador lacks an active FTA with the U.S., having previously benefited from the now-expired Generalized System of Preferences (GSP).
Still, even with FTAs in place, reciprocal tariffs can apply—especially under emergency measures addressing national security or trade deficits.
The 90-day pause & China's uncertain future
Attention then turned to China, where tariffs are currently on a 90-day pause. Jennifer broke down the current duty stack as follows: the standard tariff rate, Section 301 tariffs for intellectual property retaliation, which can be up to 25%, the IEEPA "border crisis" tariff at 20%, and the IEEPA "trade deficit" tariff, which recently reset from 34–125% to 10%.
The pause is temporary. Jennifer aptly put it: "Get out your magic eightball."
Logistics ripple effect: Why Miami matters
Santiago offered a critical logistics angle: reduced imports from China don't just affect Chinese goods. They destabilize cargo volumes into Miami, a hub vital to the South American floral supply chain.
If flights from China bypass Miami, it increases freight costs for flowers from Colombia and Ecuador—regardless of tariffs. Santiago emphasized this tight balance, "If cargo from China disappears, the costs of getting flowers from Bogotá to Miami will spike."
Legal strategies to reduce tariff burden
To help floral businesses cope with the tariff impacts, Jennifer outlined several legal mitigation strategies: renegotiate pricing with growers to share the tariff burden, use the First Sale Rule where applicable, especially if middlemen are involved, and apply for duty drawback for goods assembled in the U.S. but re-exported. She emphasized the importance of avoiding transshipment fraud, such as re-routing Chinese flowers through FTA countries like Colombia, which is considered criminal. Additionally, she advised businesses to comply with "Made in USA" standards, using that label only if products are "all or substantially all" made in the U.S.
These tools are vital for managing costs while staying compliant.
Compliance isn't optional
Jennifer stressed the importance of mastering compliance fundamentals. Customs can audit entries up to five years back, and any mistakes in HTS classifications, country of origin verification, or valuation practices can result in costly penalties and eliminate your ability to pursue tariff relief. Getting these foundational elements right is non-negotiable.
The bigger picture: Positives amid pressure
Despite all the turbulence, both experts pointed out signs of hope.
Santiago noted improvements in several key areas: transparency, which helps reduce smuggling and illegal activity; reshoring, which creates U.S. jobs and aids in rebuilding industry; and strategic logistics, which encourages integration and innovation.
Jennifer added that this disruption is fostering resilience, stronger partnerships, and smarter compliance strategies across the floral industry. "If you don't have your own Santiago—and your legal counsel—on speed dial, now's the time."
Source: www.floraldaily.com
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