Florists NAICS 459310

Apr 21, 2025 - Higher Prices Expected from New Tariffs

• Many florists are preparing for higher flower prices and other adverse impacts from new tariffs imposed by the Trump administration, according to recent reports by the Society of American Florists (SAF). The SAF has called for floral products from trade partners to be exempted from the tariffs. Over 85% of cut flowers purchased in the US are grown in other countries, which were duty-free and now face tariffs. Of the top 10 cut flower suppliers to the US, eight countries face new and higher tariffs of between 10% to 19% in total. Additionally, many floral supplies, such as vases, floral foam, plastic sleeves, and ribbon, are imported and facing tariffs as high as 145%. The SAF noted that staff cuts at the USDA-APHIS have slowed the inspection and processing of imported floriculture products at US ports of entry, and future Reductions in Force (RIF) threaten further delays and shortages.
• The US florist industry is projected to grow at a CAGR of 2.28% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy's projected growth. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation. The forecast said retail spending could soften with the growth of spending on consumer services, but noted that consumers so far have maintained spending on goods even as spending on travel and live entertainment has risen.

• Some florists say tulips are becoming more popular on Valentine’s Day, as consumers look for affordable and sustainable options to traditional roses, according to a report in The New York Times. Executives at UrbanStems, an online flower retailer, said they expect twice as many tulip sales on Valentine’s Day in 2025 compared to a year ago. CEO Meenakshi Lala said the company expected approximately 4,000 tulip orders during the Valentine’s Day cycle while it expects to sell 1.8 million stems of roses. The company began offering tulips for Valentine’s Day in 2021. Outside of Valentine’s Day, tulip sales are also on the rise. Chicago’s Southside Blooms, a floral nonprofit, grows more tulips every year to meet the increasing demands of its consumer base, growing 30,000 tulips this season. Tulip farmers say environmental upsides to the tulip include being grown more quickly, with less heat for shorter periods of time than roses.
• Flower shop traffic may be affected by falling consumer confidence, with levels declining 7.2 points to 92.9 in March 2025 month over month, according to the Consumer Confidence Index from the Conference Board. Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board, noted that the segment driving March’s decline was consumers over 55 years old, and the decline spanned all income groups with the exception being households earning over $125,000. Per Guichard, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.” Purchasing plans for homes and new cars declined while big-ticket purchases rose on a six-month moving average basis, which may reflect plans to purchase certain items before impending tariffs lead to price increases.