A new 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 worth of Canadian products, spanning from electronics to furniture to orchids.
CBC photographer Evan Mitsui recently met with a third-generation orchid farmer named Guann Chen, who operates a large greenhouse complex in St. Catharines, Ontario. Chen’s Orchid Greens are distributed by major retailers such as Loblaws, T&T, and Metro, along with numerous nurseries and flower shops in Ontario. However, a significant portion of his production caters to the U.S. market.
Chen expressed concerns over the potential levies on Canadian-grown plants, highlighting the vital role of proximity to the U.S. border and market for perishable goods like orchids. The Niagara region, including the town of Leamington, has capitalized on years of greenhouse expertise to build an export industry worth hundreds of millions of dollars.
Regarding the impact on the furniture sector, Lind Furniture, a longstanding manufacturer based in Woodbridge, Ontario, has been producing upholstered furniture for nearly six decades. While Lind supplies Costco with white-labeled products, a substantial portion of its business relies on cross-border trade with small and medium-scale retailers in the U.S.
Michael Saifer, the general manager of Lind Furniture, emphasized the detrimental effects of the current trade uncertainties. He mentioned that even before the new tariffs, the business had already suffered. The uncertainty has led to disruptions in supply chains, with orders being put on hold, resulting in staff layoffs and reduced shifts.
Saifer noted that the rising costs of components like steel fasteners and premium hardwoods have added further strain to the business. The unpredictability of the situation has caused significant challenges for the company and its employees, with the future outlook remaining uncertain.
