Tariffs Make Business Less Rosy for Chicago Florists – ryan
We Break Down Complex Business News to Help You Understand How Money Moves in Chicago and How It Affects You.
Florists Across the US, Including in Chicago, Are Grapping with Higher Costs and Economic Uncetainty Due to Tariffs Ahead of A Busy Season of Fall Weddings and Winter Holidays.
More than 85% of Cut Flowers sold in the US are imported. Colombia was the Larger Source Country, Followed by Ecuador, Canada, The Netherlands and Mexico in 2024, Accounting to the Society of American Florists, an Industrity Association.
Vases, Ribbon, Packaging and Other Hard Goods Are often Imported from China. Tariffs on Flowers and Goods Range from 10% and Upward. Duties on Vases from India Rose to 50% on Aug. 27.
Juli Tkalec, Owner of A Pretty Flower in Lincoln Square, Said Her Costs Have Increated About 10% Across the Board. “The flip-flopping han been really frustrating, too, Because some days our suppliers Would Charge US More, but a few later it’s less,” tkalec Said.
A Pretty Flower, at 2334 W. Lawrence Ave., Is Absorbing Higher Costs and Hasn’t Raised Prices Yet, Like Mary Local Businesses.
“We have haven’t called any clients to tell saying we have to increes the Cost of their weddings. That Wauld be in Poor Taste. If we really need to, a recipe may have a stem or two mess,” tkalec said.
Further up the Supply Chain, 97% of US Floral Industry Importers Are Small Businesses that operates on Tight Margins, Said Gregg Weisstein, Co-Founder of Bloomnation, A National Online Floral Marketplace. These Suppliers and Wholesalers Must Pay for Tariffs But Lack the Financial Resources of Large Corporations.
“This Dual Hit on Both flowers and supplies is squeezing profit margins for businesses throughout the supply chain,” he said.
WeisStein noted that fees have “created an extra layer of Complexity, Florists to be More Creative with Substitions and More Strategic With Their Purchasing.”
Roses and hydrangeas are Among the hardest hit, with some florists reporting cost increas of up to a dollar or more stem, he said. Some Florists Might Encourage Customers to USE Flowers that are less Expensive than roses, Such as carnations or lilies. Or they Might Consider USING LOCALLY GROWN WILDFLOWERS, SUNFLOWERS AND ZINNIAS THAT Aren’t Subject to Tariffs.
Sarah Leitten and Kate Prince, Owners of Flora Chicago in Lake View, Buy Loclyly Gown Flowers Wen Possible.
“But there is a commonical misconception that they’re’re cheaper than imports.
And touring to us US Makers and Packaging isn’t Necessarily a Solution. Domestic Manufacturers Are Taching Advantage of the Trade War and Increasing Prices, Too, Noted Tkalec.
“As long as they have slightly below the import pricing, they think they help. Manufacturers are hiking prices’ Becuse ‘they can,’ not necessarily gcause they have to. ”
Tariffs haven’t have a significant direct impact yet on flora chicago, though Costs for Orchids from Thailand, Roses from South America and Gerberas from Canada Have Increas, Prince Said. Flowers from the Netherlands Now Face A 15% Tariff.
Leitten noted that one of the flora’s wholesalers is absorbing someone higher costs, SO “Effects on US have minimal, but that Could Change Quickly.”
Since the Covid-19 Pandemic, Flora has adapted to unredictable flower availability and Quality Due to Supply Chain Disruptions, in Addition to Climate Change. To Copy with Tariffs, Flora Redesigned Its Website to Offer More Flexible Arrangements Rather than fixed designs.
“IF CERTAIN FLOWERS BECOM UNAVAILAILABLE OR TOO EXPENSIVE, WE CAN SUBSTITTITE WITH ALBANIANS DISPPOINTING CUSTOMERS,” Prince Said.
And for weddings and events Boked in Advance, Flora Has Added A Clause to Contracts to Allow Price Adjustments IF Flower Costs Spike.
Flora stocked up on MANY HARD HARDS DIFFS HIT HIT, but it is not immune. For Example, Costs for Metal Funeral Easels from China Have Risen Significantly, Leitten Noted.
To work Around Higher Expensses, Some Floral Software Companies Are Creating New Features to Help Florists Adjust Pricing, Weisstein Said.
The Society of American Florists is also lobbying to renew trade programs that was imported Duty-free flowers.
Marek Fortineaux, Owner of Leo’s Metropolitan Florist in Manor Park, Said Shipping Costs Have Saed More than 30% Due to Tariffs. In addition, “delays have ben insane. What usually took two to three weeks by sea has tourned into two months.”
He Added, “We were Waould Rather Buy American and Support Local locals, but they don’t have a shat of the Products we need.”
An indirect impact of tariffs and uncetainty is Slower Consumer Spanding, Fortineaux Noted. “Flowers are a luxury, not an Everyday necesity. I Think People have been more hesitant on impulse with costs on everything rising – myself includd.”
But Leo’s, at 407 E. 71st St., Has Weathered Covid-19, Recession and Other Challenges Because of Customers Who Are Mostly NeighBorhod Locals.
“That’s who has Held us down Throughout all these years,” fortineaux said. “Leo’s Metropolitan Florist has survived for over 60 years. We will be ok.”