U.S. tariffs threaten Canada's greenhouse vegetable exports

U.S. tariffs on Canadian goods are creating significant risks for Canada's greenhouse sector. This sector heavily relies on exports to the U.S., and fewer imports from Canada due to tariffs could lead to serious losses. Richard Lee, executive director of Ontario Greenhouse Vegetable Growers, noted that a few days of tariffs have already cost the Ontario sector over $6 million. Earlier this month, U.S. President Donald Trump implemented tariffs on imports from Canada and Mexico. However, he quickly announced a pause on tariffs for goods that meet specific trade agreement rules. The relationship between Canada's greenhouse industry and the U.S. market is very close; the U.S. accounted for almost all of the $1.7 billion worth of Canadian greenhouse vegetables exported in 2023. As Canada's greenhouse sector has grown rapidly in recent years, it now produces far more vegetables than the country consumes. The primary crops include tomatoes, cucumbers, and peppers, which make up the majority of greenhouse harvests. However, it is difficult for Canada to absorb all that produce if exports fall. The sector faces limitations in what can be grown, partly due to climate and infrastructure challenges. Although some farms are exploring growing new crops, like tropical fruits, it takes time and investment. A recent RBC report suggested that expanding the variety of crops could help the sector adapt to changing consumer preferences and climate issues. While traditional greenhouses are struggling, the vertical farming industry is finding new opportunities. Lenny Louis, CEO of Vision Greens, reported increased demand for locally grown produce since the tariffs began. Vertical farms are designed to maximize space and grow crops using hydroponics, becoming a local alternative for consumers. However, products from vertical farms tend to be more expensive. As they grow and scale operations, prices could become more competitive. Vision Greens recently secured $20 million to expand its capacity, indicating a positive outlook despite ongoing trade challenges.