A fresh set 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 around $20 billion US worth of Canadian imported goods, ranging from electronics and furniture to orchids.
CBC photographer Evan Mitsui recently engaged with an orchid greenhouse and furniture manufacturer in Ontario to delve into their apprehensions. Guann Chen, a third-generation orchid cultivator, operates an expansive, newly established greenhouse complex in St. Catharines, Ont., situated within the heart of Niagara’s greenhouse cluster.
Chen’s Orchid Greens products are retailed in major grocery chains like Loblaws, T&T, and Metro, as well as numerous nurseries and flower outlets across Ontario. However, nearly half of his production caters to the U.S. market. The imposition of tariffs on Canadian-grown plants poses an existential threat to Chen’s business, primarily structured to meet American demand.
The uncertainty surrounding the situation is a significant concern for furniture manufacturer Lind Furniture, which has been producing upholstered furniture for nearly six decades in Woodbridge, Ont. Despite a substantial partnership with Costco, a significant portion of Lind’s business involves cross-border trade with small and mid-sized retailers in the U.S.
Michael Saifer, the general manager at Lind Furniture, expressed the detrimental impact of the prevailing uncertainty, stating that the company is already bearing the brunt of the situation. Orders are currently on hold due to the risk of potential border delays and taxes, leading to the furlough of staff and reduced shifts.
The escalating costs of components such as steel fasteners and high-quality woods, essential to Lind’s operations, have added to the company’s challenges. This predicament underscores the pressing need for clarity and stability in the trade environment to safeguard the interests of Canadian businesses in the face of evolving tariff dynamics.
