A new set of tariffs imposed by the U.S. poses a threat to Canadian businesses in the absence of a Canada-U.S. trade agreement. Section 338 of the Smoot-Hawley Tariff Act has the potential to impact approximately $20 billion worth of Canadian goods, ranging from electronics and furniture to orchids.
Photographer Evan Mitsui from CBC recently met with a third-generation orchid farmer, Guann Chen, who operates a large orchid greenhouse complex in St. Catharines, Ontario, situated in the heart of Niagara’s greenhouse belt. Chen’s Orchid Greens are distributed in major grocery chains like Loblaws, T&T, and Metro, as well as numerous nurseries and flower shops across Ontario, with almost half of his production intended for the U.S. market.
The looming tariffs on Canadian-grown plants are concerning for Chen, as the U.S. market is vital for his business, given the proximity to the border and the extensive demand for perishable goods like orchids. The Niagara region, along with the town of Leamington to the southwest, has channeled decades of greenhouse expertise into an export industry valued at hundreds of millions of dollars.
Chen emphasized the impracticality of the tariffs, especially considering the lengthy cultivation period for orchids, making it challenging to switch suppliers abruptly, despite larger orchid operations in California.
In a separate visit, Lind Furniture, a company with nearly 60 years of experience in producing upholstered furniture in Woodbridge, Ontario, expressed concerns about the uncertainties arising from the new tariffs. While Lind has a significant partnership with Costco, a substantial portion of its business relies on cross-border trade with small and medium-sized retailers across the U.S.
General manager Michael Saifer, overseeing the operations for almost three decades, highlighted the detrimental impact of the uncertainty caused by the tariffs on their business, which has led to disruptions in their supply chain and financial losses. The company has had to put orders on hold, leading to staff furloughs and reduced shifts, as they navigate increased prices of essential components like steel fasteners and hardwoods.
The challenges faced by both Orchid Greens and Lind Furniture underscore the immediate repercussions of the tariff threats on Canadian businesses, emphasizing the need for a swift resolution to safeguard the economic interests of these enterprises.
