Saskatchewan honey producers are feeling the sting of an escalating trade war with the United States.
Hannigan Honey near Shellbrook is one of many businesses taking a major hit from new U.S. tariffs.
“It’s a bit of a wait-and-see situation, but certainly there is a lot of concern,” said owner Murray Hannigan.
In its 84 years of operation, there have been few challenges as big as the current one facing Hannigan Honey.
The U.S. recently imposed 50 per cent tariffs on roughly $28 billion in Canadian goods, including natural honey.
It’s a major blow for Murray Hannigan’s honey operation, which typically sends between 20 to 40 per cent of its product to the United States.
“A lot of uncertainty. It is affecting us hugely, just simply shutting us out,” said Hannigan.
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Because his business has been around for so long, he has a solid foundation to ride out the uncertainty. But he worries about how the unpredictability is weighing on the nearly three dozen staff supporting his operation.
“I provide work for a lot of people. That’s really important to me that they have a degree of stability in their lives,” said Hannigan.
Fortunately for Hannigan, he started diversifying markets to which he sends his product, outside the U.S., more than a decade ago.
That strategy is ramping up even more in this trade war with the U.S., looking to Europe and Japan as countries where he can sell his product. But those relationships aren’t formed overnight.
“We have had to travel to Japan; we’ve gone with the premier. We’ve been there on our own. And that connectivity is very important to them. It’s important to us,” said Hannigan.
In response to the counter-tariffs announced by Ottawa, Premier Scott Moe says in a statement he believes Canada is taking a focused and targeted approach, and that the province supports the federal government.
The new counter-tariffs cover about $1.5 billion or 11.3 per cent of Saskatchewan annual imports from the United States.
As for Hannigan, until trade tensions are sorted out, he says he will do the best he can to navigate the uncertainty, diversify his trading partners, and hope that cooler heads will prevail.
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