Businesses along the U.S.-Canada border are eagerly anticipating a trade deal that could bring long-term stability and foster economic growth.
Despite benefiting from protections under the United States-Mexico-Canada Agreement (USMCA), ongoing trade talks and a review clause next year have created uncertainty for many growers.
President Donald Trump signed an executive order at the end of last month, imposing a 35-percent tariff on Canadian goods excluded from the USMCA. This policy change has further compounded challenges for exporters relying on cross-border commerce.
In Ontario, home to North America's largest concentration of greenhouses, vegetable growers are facing rising costs and an uncertain future. Ontario's "greenhouse alley," which produces nearly 650 million kilograms of tomatoes, cucumbers, and peppers annually in an industry worth billions of dollars, plays a vital role in exports to the U.S.
Richard Lee, executive director of Ontario Greenhouse Vegetable Growers, noted that unstable trade conditions are discouraging significant investments.
"We rely on the U.S. market. We export over 85 percent of our product currently. As much as we export into the United States, agricultural products, fresh fruit and vegetables, we rely heavily on the U.S. to supplement Canada," said Lee.
Growers are already facing low commodity prices and rising production costs, in part due to the retaliatory tariffs that Canada has imposed on U.S. goods.
For now, Canadian produce remains exempt from tariffs under the USMCA. However, with the agreement's review clause approaching next year, growers remain cautious about future trade conditions. Lee highlighted how this uncertainty has made businesses reluctant to pursue new investments.
The ongoing tariff dispute has also sparked unintended consequences, including a rise in local support for Canadian products. The Buy Canada movement encouraged many Canadians to boycott U.S. goods, and some provinces, including Ontario, even removed U.S. alcohol from their shelves. "I think our industry has been impacted much the way many Canadian businesses have, where we're seeing an outpouring of support for all local businesses. Just like so many other small Canadian businesses in our area, are seeing just such a boost," said Andrew Wilson, a winemaker at Oxley Estate Winery. This shift has brought new opportunities for Canada's domestic wine industry. "My hope is only to see it continue to grow within Canada. We are a huge country with so much potential and some of the best agriculture in the whole world. I think we're really just starting with Canadian wine," Wilson said.
Despite the tariff turbulence, the resilience of both U.S. and Canadian economies offers hope. Businesses across the border remain optimistic that a trade deal will soon bring lasting stability and renewed opportunities.
Businesses along U.S.-Canada border pin hopes on trade deal for economic stability
