Dutch Greenhouse Builders Facing Tariff-Related Challenges

Dutch greenhouse builders are being hit hard by U.S. import tariffs on steel and aluminum, according to the financial editorial team at Telegraaf.nl. Clients are canceling orders, and greenhouse builders are attracting significantly fewer new orders in the U.S. market.

This is according to Annie van de Riet, chair of AVAG, the trade association for the Dutch greenhouse construction and installation sector. Atrium Agri, a partnership with greenhouse builders and others, has seen several orders cancelled or suspended.

In addition to the 50% U.S. tariffs on steel and aluminum, greenhouse builders are also affected by tariffs on Chinese goods. The glass for greenhouses is often imported from China. Steel, aluminum, and glass are important building materials for greenhouses, but the tariffs are making them more expensive. According to Van de Riet, the tariffs generally increase the cost of building a greenhouse by a quarter, making clients hesitant to sign a contract.

Van de Reit also believes uncertainty plays a major role, for example, regarding how long the tariffs will be in effect, which levies must be paid, and whether the EU and the U.S. will make new agreements on the matter. “Because of that uncertainty, everything is practically at a standstill. Not knowing how much you have to pay is a deterrent,” Van de Reit says. She believes the entire supply chain is being affected by the problems.

Greenhouse builders are losing tens of millions of euros as a result, says Van de Riet. Before the tariffs, the U.S. was among the top five most important markets.

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Now, she says, greenhouse builders are looking to other markets, for example, the Middle East and South America. How that will work out remains to be seen, but she doesn’t expect companies to run into problems. “There’s no area where they’re not active. A Dutch greenhouse builder is involved in the construction of 80% of all greenhouses.”

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