A fresh round of U.S. tariffs poses a threat to Canadian businesses in the absence of a Canada-U.S. trade agreement. Under Section 338 of the Smoot-Hawley Tariff Act, around $20 billion US worth of Canadian imports, spanning from electronics to furniture to orchids, could be impacted.

CBC photographer Evan Mitsui recently paid a visit to an orchid greenhouse and furniture manufacturer in Ontario to delve into their apprehensions. Guann Chen, a third-generation orchid grower with a sprawling new greenhouse complex in St. Catharines, Ont., at the heart of Niagara’s greenhouse hub, shared his concerns.

Chen’s Orchid Greens products are retailed in major grocery chains like Loblaws, T&T, and Metro, along with numerous nurseries and flower shops in Ontario. However, nearly half of his production caters to the U.S. market.

The looming levy on Canadian-grown plants is seen as a critical threat to Chen’s business model, primarily designed to meet American demand. The region’s proximity to the U.S. border plays a pivotal role in facilitating the export of perishable goods such as orchids, enabling the Niagara region to consolidate decades of greenhouse cultivation expertise into an export industry valued at hundreds of millions of dollars.

Chen expressed his skepticism towards the tariffs, emphasizing the complexities involved in swiftly transitioning suppliers for products like orchids that require years to cultivate. He criticized the lack of foresight behind the tariff implementation.

In another sector, Lind Furniture, a long-standing upholstered furniture manufacturer based in Woodbridge, Ont., faces challenges amid the uncertain trade landscape. While the company white-labels for Costco presently, a significant portion of its business relies on cross-border trade with small and medium-scale retailers in the U.S.

The general manager, Michael Saifer, who has overseen operations for nearly three decades, highlighted the detrimental impact of the prevailing uncertainty on their business. Orders have been put on hold as clients cannot risk substantial investments that might encounter delays at customs checkpoints and incur additional taxes.

Saifer noted that rising costs of essential components, such as steel fasteners and premium hardwoods integral to their products, have further exacerbated the situation. The company has been compelled to implement staff furloughs and cut shifts in response to the economic challenges stemming from the trade uncertainties.