A fresh round of U.S. tariffs looms over Canadian enterprises in the absence of a Canada-U.S. trade agreement. The potential impact of Section 338 of the Smoot-Hawley Tariff Act extends to $20 billion worth of Canadian products, spanning from electronics to furniture to orchids.
CBC photographer Evan Mitsui recently engaged with an orchid greenhouse operator and furniture manufacturer in Ontario to delve into their apprehensions. Guann Chen, a third-generation orchid grower, manages a sprawling, state-of-the-art greenhouse complex in St. Catharines, Ont., nestled in the heart of Niagara’s greenhouse hub.
Chen’s Orchid Greens merchandise is retailed by major chains like Loblaws, T&T, and Metro, as well as numerous local nurseries and flower boutiques in Ontario. However, a significant portion of his output caters to the U.S. market. The imposition of tariffs on Canadian-grown flora poses a severe threat to his business model, which is intricately tied to meeting American demand promptly.
The geographical proximity to the U.S. border plays a pivotal role in facilitating the export of perishable commodities such as orchids. This advantage has enabled the Niagara region, along with the nearby town of Leamington, to leverage decades of greenhouse cultivation expertise into a thriving export sector valued at hundreds of millions of dollars.
Despite the presence of larger orchid producers in California, Chen stresses the impracticality of swiftly transitioning suppliers due to the lengthy cultivation period required for orchids. The introduction of tariffs, in his view, lacks foresight and disregards the complexities of the industry.
In a parallel narrative, Lind Furniture, a venerable upholstered furniture manufacturer with a six-decade legacy in Woodbridge, Ont., faces uncertainties exacerbated by the ongoing tariff discourse. While Lind collaborates with Costco, accounting for a substantial portion of its business, a significant share of its revenue is derived from cross-border transactions with small and mid-sized retailers in the U.S.
Michael Saifer, the general manager with nearly three decades of tenure at Lind, laments the detrimental impact of the prevailing uncertainty on their operations. He emphasizes that the current climate of unpredictability poses a severe challenge to their business sustainability.
The disruption in the supply chain due to potential border delays and tariffs has compelled Lind Furniture to suspend orders, leading to workforce reductions and operational adjustments. The escalating costs of essential components like steel fasteners and premium hardwoods further compound the company’s financial strain.
As the trade landscape remains in flux, the Canadian business community braces for the looming ramifications of the tariff saga, navigating through a landscape characterized by economic insecurities and operational setbacks.