A fresh set of U.S. tariffs looms over Canadian enterprises in the absence of a Canada-U.S. trade agreement. The implementation of Section 338 of the Smoot-Hawley Tariff Act has the potential to impact around $20 billion in imported Canadian products ranging from electronics and furniture to orchids.
CBC photographer Evan Mitsui recently engaged with an orchid greenhouse owner and furniture manufacturer in Ontario to delve into their apprehensions.
Guann Chen, a third-generation orchid cultivator, operates an expansive, state-of-the-art greenhouse complex in St. Catharines, Ont., situated within the heart of Niagara’s greenhouse hub. His Orchid Greens brand is retailed at major grocery chains like Loblaws, T&T, and Metro, as well as numerous nurseries and flower shops across Ontario. However, nearly half of his production caters to the U.S. market.
Chen views the imposition of tariffs on Canadian-grown plants as a significant threat to his business model, which is intricately linked to meeting American demand promptly due to the perishable nature of orchids. The proximity to the U.S. border and access to the expansive American market have allowed the Niagara region, along with the town of Leamington, to concentrate years of greenhouse expertise into an export industry valued at hundreds of millions of dollars.
Expressing his concerns, Chen highlights the impracticality of the tariffs, especially considering the lengthy cultivation period required for orchids. He emphasizes that it is not feasible to swiftly switch suppliers overnight, especially when considering the intricate growth process of orchids.
In a similar vein, Lind Furniture, a longstanding upholstered furniture manufacturer operating for nearly six decades in Woodbridge, Ont., faces uncertainties regarding cross-border trade with the U.S. market. Despite partnering with Costco for white-label production, a significant portion of Lind’s business involves trade with small and mid-sized retailers in the United States.
Michael Saifer, the general manager with almost three decades of experience at Lind Furniture, expresses the detrimental impact of the ongoing uncertainties on their operations. The company’s operations have already been affected, leading to staff furloughs and a reduction in shifts due to the hold placed on orders.
Saifer laments the rising costs of essential components like steel fasteners and high-quality woods, which are pivotal elements of Lind’s furniture manufacturing process.
The prevailing scenario has created a challenging environment for these Canadian businesses, leading to operational disruptions and financial strains in the face of the uncertain trade landscape.