A fresh round of U.S. tariffs poses a threat to Canadian businesses in the absence of a Canada-U.S. trade agreement. The implementation of Section 338 of the Smoot-Hawley Tariff Act could impact approximately $20 billion worth of Canadian products, spanning electronics, furniture, and orchids.
Photographer Evan Mitsui from CBC recently engaged in discussions with an orchid greenhouse owner and a furniture manufacturer in Ontario. Guann Chen, a third-generation orchid farmer, operates a large modern greenhouse in St. Catharines, Ontario, at the heart of Niagara’s greenhouse region. His Orchid Greens are distributed in major Canadian grocery chains such as Loblaws, T&T, and Metro, as well as numerous nurseries and flower shops in Ontario. However, nearly half of his production caters to the U.S. market.
Chen expressed concern over the potential impact of levies on Canadian-grown plants, citing the criticality of the proximity to the U.S. border for perishable goods like orchids. This geographical advantage has enabled the Niagara region, along with Leamington to the southwest, to transform decades of greenhouse expertise into a lucrative export industry valued at hundreds of millions of dollars.
Regarding the furniture industry, Lind Furniture, a company with a history of nearly six decades in upholstered furniture manufacturing in Woodbridge, Ontario, faces uncertainty due to its cross-border trade with small and medium-sized retailers in the U.S. Despite a significant partnership with Costco, representing up to 40% of its business, General Manager Michael Saifer highlighted the challenges posed by the ongoing trade uncertainties.
The impact of the current wave of tariffs has already been felt, with orders being put on hold due to the unpredictability of border restrictions and potential taxes. Saifer noted the rise in component prices, including essential materials like steel fasteners and quality hardwoods, affecting the company’s operations and leading to staff furloughs.
The prevailing sentiment among affected businesses is one of unease and apprehension, as they navigate through the uncertainties created by the evolving trade landscape.
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