Trump tariffs a devastating blow to greenhouse sector in Windsor-Essex

The greenhouse sector in Windsor-Essex will be "significantly" impacted by the hefty U.S. tariffs being imposed on Canadian goods, the head of the association representing growers said Monday.

Richard Lee, executive director of the Ontario Greenhouse Vegetable Growers (OGVG) said while he continues to maintain an optimistic outlook, the proposed tariffs would be detrimental for growers.

"The tariffs would impact our sector significantly, 25 per cent tariffs would result in about $475 million added to consumer costs," Lee told CBC News. 

"There's no way our supply chain can manage that type of increase, the margins just aren't there, and ultimately the end consumers in the United States will be faced with those additional costs."

According to Lee, Ontario's greenhouse sector is a significant contributor to the provincial and federal economy, with approximately $1.7 billion in farm gate sales, and export activity of approximately $1.6 billion. 

In Essex County OGVG represents about 3,200 acres or about 142 farms, where they grow cucumbers, tomatoes and peppers, the majority of which are sold in the United States, Lee said.

"We grow so much produce that there's no way Canada could consume the volume of produce we grow just based on our population, so over 85 per cent of the produce is exported to the United States," Lee said. 

"If you look at a map, east of the Mississippi is our target area all the way down south to Florida, which is approximately 58 per cent of the population of the United States, so we can reach most of those markets within one day's drive."

'A very significant amount of angst' among growers: Lee

Lee said there's "a very significant amount of angst" among growers, mainly due to fear of the unknown.

"Everyone's been waiting patiently to see what the threats would amount to [and] now we're realizing that as of midnight tonight, any shipments going into the US would be subjected to additional tariffs, 25 per cent added to that cost," he said. 

"I know a lot of our produce sellers have been contacting their retailers to ensure that they're able to absorb those costs and they're able to pass it on to the consumer and we're hoping that we can continue sharing and trucking that produce over the United States and hope that demand would be sustained throughout the the term of these tariffs."

The president and CEO of the Windsor-Essex Regional Chamber of Commerce has also expressed concern about what the proposed tariffs would mean for growers.

"The agriculture industry is very much concentrated in Kingsville, Leamington, with approximately 80 per cent of all of the greenhouses in Canada located in [those] two regions," Ryan Donally said on Windsor Morning. 

"That accounts for 3,200 acres of greenhouse and approximately 28,000 jobs all along the value chain, so if the U.S. consumer isn't willing to pay the additional price that will be imposed because of these tariffs, what does our agricultural industry do and what happens with that immediately?"

Uncertainty 'looming extremely large' for businesses

In addition to the greenhouse growers, Donally said businesses large and small in Windsor-Essex are all facing significant uncertainty.

"We don't know what's going to happen yet [but] we've got a sense of what may come, but that uncertainty is looming extremely large," he said.

On Saturday Trump announced he would slap a 25 per cent tariff on virtually all Canadian goods with a lower rate — 10 per cent — for the country's energy products.

Trump said he was delivering on a campaign promise to seek retribution from countries he claims are "ripping off" the U.S.

Prime Minister Justin Trudeau spoke to the U.S. president early Monday morning about the forthcoming tariffs, and they are expected to speak again later today.

Meanwhile, Lee  said he's imploring the federal government to recognize the importance of agriculture in Canada and that any subsidies through retaliatory tariffs are aimed at and implemented to the impacted sectors to minimize any harm.

'This will pass,' Lee says

Lee's message to growers is, "as with the pandemic, as with most crises, this will pass. We're aiming for a very short period of pain and that we should be able to endure these tariffs for a short time, but if it goes on for any extended period of time, we obviously will have some challenges in maintaining these added costs."