President Donald Trump’s trade war with Canada has disrupted billions of dollars in economic activity, affecting everything from automobiles to Crown Royal whiskey. And customs tariffs even complicate the business of New York’s first farm cidery.
Nine Pin Ciderworks in North Albany uses 3.3 million pounds of apples each year to make about 150,000 gallons of cider. Almost all the apples come from an orchard in Kinderhook, about 21 miles away.
The problem is that most people drink Nine Pin ciders in cans – about 2.4 million cans each year. And although these cans are made by Ball Co. in Saratoga, about 25 miles away, they are made from imported aluminum sheets.
Sonya del Peral, co-founder of Nine Pin, said a local business dependent on a nearby harvest should be safe from the trade war. But that’s not the case.
“It seems like it’s a global thing, and it is, but the aluminum foil that Ball uses to make the cans comes from Canada,” said Sonya del Peral, co-founder of Nine Pin. “Otherwise, we’re such a hyperlocal company. »
More than $21.1 billion in goods move from Canada to New York each year, including $1.1 billion in aluminum products, according to the Canadian government. Trump imposed 50% tariffs on steel and aluminum imports starting last year.
The Republican president has said he wants to increase domestic metal production as a national security measure.
“Our steel and aluminum industries are coming back like never before,” Trump wrote on social media in May last year. “This will be BIG news again for our wonderful steel and aluminum workers. »
Garry Douglas, longtime president of the North Country Chamber of Commerce in Plattsburgh, said he was skeptical about it.
“You have to find bauxite, mine it and produce raw aluminum,” he said, adding that it would take years. “When was the last time you saw it easy to start a new mining operation anywhere in the United States for any reason? Canada is much more mining friendly.”
Del Peral said his canning costs have increased by 30% because of the tariffs. This put a strain on her profit margin and forced her to increase her line of credit with her bank. The added costs make it more difficult to think about expansion or other major business decisions.
Douglas said many businesses feel this way. He called the tariffs a tax and said they added uncertainty and sourness to what is normally an extremely amicable relationship with businesses north of the border.
U.S. Senator Kirsten Gillibrand said Thursday she has introduced a bill to repeal Canadian tariffs. Trade negotiations between Canada and the United States collapsed in August. Canada then began negotiations to become an “associate member” of the European Union.
Trump responded by banning the importation of Canadian beer, motorcycles and dairy products. He also decreed that Lake Ontario, which borders upstate New York, should henceforth be called Lake America. The import bans are expected to come into effect on Tuesday.
“Costs could continue to rise if President Trump escalates this trade war,” said Gillibrand, a Democrat.
So far, Nine Pin has not increased the prices of its various ciders, most of which contain alcohol. A four-pack of the company’s flagship blend still costs $12, but del Peral isn’t sure how long she’ll last.
“We’re hesitant to raise prices because, you know, we understand right now that consumers are very, very cautious in their choices. And we don’t want to lose customers,” she said. “At a certain point, it’s no longer sustainable.”
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