A fresh set of U.S. tariffs is looming over Canadian enterprises in the absence of a Canada-U.S. trade agreement. Section 338 of the Smoot-Hawley Tariff Act is poised to impact around $20 billion US worth of Canadian imports, ranging from electronics and furniture to orchids.
Photographer Evan Mitsui from CBC recently visited an orchid greenhouse and furniture manufacturer in Ontario to delve into their apprehensions. Guann Chen, a third-generation orchid cultivator with a sprawling new greenhouse complex in St. Catharines, Ontario, situated in the hub of Niagara’s greenhouse region, expressed his concerns.
Chen’s Orchid Greens products are retailed in major grocery chains like Loblaws, T&T, and Metro, along with numerous nurseries and flower shops across Ontario. However, almost half of his produce caters to the U.S. market.
For Chen, the imposition of tariffs on Canadian-grown plants poses a severe threat to a business that primarily serves the American clientele. The proximity to the U.S. border plays a pivotal role in the trade of perishable goods such as orchids, enabling the Niagara region to concentrate years of greenhouse expertise into an export industry valued at hundreds of millions of dollars.
Chen finds the tariffs unreasonable, despite the presence of larger orchid operations in California. He emphasized the time-intensive nature of orchid cultivation, remarking that switching suppliers overnight is not feasible.
In another development, Lind Furniture, a Woodbridge-based upholstered furniture manufacturer with a history spanning nearly 60 years, faces challenges amidst the uncertainties surrounding the new wave of tariffs. While Lind collaborates with Costco, a significant partner, a substantial portion of its business relies on cross-border trade with small and medium-scale retailers in the U.S.
Michael Saifer, the general manager at Lind Furniture, shared concerns about the adverse impacts of the ongoing uncertainty. He highlighted the predicament of clients in need of a seamless supply chain, underscoring the financial risks associated with potential border delays and taxes. Consequently, orders are being put on hold, leading to staff layoffs and reduced shifts.
Saifer noted that the costs of crucial components like steel fasteners and high-quality woods have already surged, affecting the core operations of the business.