Ontario mattress maker may relocate to U.S. due to tariffs

Pioneer & Legend Canada, a mattress maker based in Ontario, is thinking about moving its operations to the United States. This comes amid fears of a potential trade dispute between Canada and the U.S. The company exports more than 60 percent of its products to the U.S. Owner Lei Ping stated that the possibility of American tariffs is already negatively impacting the business. He mentioned that increased costs and the loss of skilled workers have been significant issues. On March 3, the company sent 16 truckloads of mattresses to the U.S. However, three trucks were delayed at the border and were cleared after a crucial tariff deadline. This led to about $40,000 in unexpected duties. Ping noted that tariffs wiped out their profit margin of around 10 to 15 percent for that shipment. If tariff concerns continue, Ping warned that the company may need to close its Ontario facilities. Customers are already asking about plans if tariffs rise to 20 percent. Many prefer to buy locally made products. The company has two manufacturing sites in Vaughan and North York, employing over 100 skilled workers. Production director Ze Yan Ye mentioned that employees are nervous about their job security, and some have already left for other industries. While only 10 percent of their raw materials come from the U.S., over 60 percent of their finished products are exported there. Ping said that expanding into markets like Europe or Asia would be difficult due to established local suppliers. Adjusting the company's strategy would also be a big challenge.