A fresh set of U.S. tariffs loom over Canadian enterprises pending 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 imports, spanning 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 a sprawling new greenhouse complex in St. Catharines, Ont., nestled in the heart of Niagara’s greenhouse hub. His Orchid Greens 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 produce caters to the U.S. market.
For Chen, the imposition of tariffs on Canadian-grown flowers poses a significant threat to a business predominantly servicing American demand. The strategic proximity to the U.S. border and access to the expansive American market are crucial for perishable goods such as orchids, enabling the Niagara region, alongside Leamington to the southwest, to concentrate years of greenhouse cultivation expertise into an export sector valued at hundreds of millions of dollars.
Chen expressed his perplexity over the tariffs, emphasizing the complexity of transitioning suppliers overnight, especially with the gestation period of orchids. He pointed out the presence of larger orchid operations in California but stressed the impracticality of sudden changes in the supply chain.
In another segment, Lind Furniture, a seasoned upholstered furniture manufacturer established in Woodbridge, Ont., for nearly six decades, has served prominent Canadian department stores like Sears, Eaton’s, and Simpsons in the past. Presently, the company undertakes white-label projects for Costco, with a substantial portion of its operations involving trade with small to medium-scale retailers in the U.S.
Michael Saifer, the general manager at Lind Furniture for close to 30 years, voiced concerns over the detrimental impact of the ongoing tariff uncertainties on the business. He highlighted the challenges posed by the unpredictability in the trade environment, which has already led to adverse consequences for the company.
The article underscores the predicament faced by businesses like Lind Furniture due to the suspension of orders, triggered by the risk of border delays and additional taxes. Saifer elaborated on the financial strain imposed on clients and the operational setbacks that have compelled the company to halt production temporarily and reduce work shifts. Furthermore, the escalating prices of essential components, such as steel fasteners and premium hardwoods, have further exacerbated the situation, impacting the company’s bottom line.
