Summer 2024 “Canada and the United States have always done big things, together. As the largest and most ambitious infrastructure project along the Canada-United States border, the Gordie Howe International Bridge is proof of just that. Beyond further strengthening the deep connection between our two nations, this bridge will drive economic growth for both countries while creating more jobs and increasing border security.”  

The Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities 

That was then. And this is now. 

President Trump’s 25 per cent tariffs were temporarily paused after just three days on March 4 to 6, 2025 but the damage on the Canadian side of the bridge was immediate. Collectively, Ontario greenhouse vegetable growers paid the U.S. federal government more than $6 million in tariffs. 

American consumers however, felt no impact as U.S. retailers used differing approaches to protect prices. Some invoiced the full tariff amount back to the growers, while others only invoiced a portion. This happened despite some existing sales contracts to the contrary.

Uncertainty aside, Canadian growers have been getting ready for the impact.  “Our marketers were very well prepared,” says Richard Lee, executive director, Ontario Greenhouse Vegetable Growers (OGVG). To guarantee that their produce cleared U.S. Customs at the border in a timely fashion, growers collectively posted additional bonds in advance with customs brokers managing their transborder shipments. Some farms had to post bonds based on previous year’s sales. The dollar amount varied depending on the farm and situation. In one example, a farm had to post an additional $10 million bond within the space of a week. 

“This has stressed out operating lines of credit, cost of borrowing and the full value chain,” Lee explains. “Remember the grower doesn’t get paid until 40 to 60 days after delivery to the retailer.” 

Until mid-March, the American agriculture sector had been mostly silent about the impact from Canada’s proposed reciprocal tariffs. But American farmers, worried about the rise in Canadian potash prices, eventually rallied to have the American Farm Bureau tell President Trump he was losing support from his mid-west voting base. 

Hanging in the balance

It’s an understatement to say that the road ahead is rocky for Canada’s greenhouse industry. The sector produces $1.8 billion in farmgate value annually, mostly from British Columbia, Alberta, Ontario and Québec with Ontario leading the way at $1.6 billion (Statistics Canada 2023). OGVG is headquartered in Leamington, Ontario and its members ship more than 430 million pounds of vegetables to the U.S. annually. Located an hour away from the border crossing, growers can reach 58 per cent of all American consumers residing east of the Mississippi in a day’s drive.

Any reasonable person would hail ready access to nutritious, well-priced vegetables as a prescription for the towering health costs caused by the current obesity crisis. But in Trump’s world, one can’t expect a U.S. secretary of health to support such logic. As Lee outlines, if the tariffs are implemented as currently threatened, it would likely take about four weeks to see a shift in U.S. consumer buying habits ultimately leading to less demand for Ontario-grown greenhouse produce and thus impacting farm workers. 

Historically, excess greenhouse vegetable production has been donated to regional food banks, but they are not a viable alternative for the volume of vegetables already in production that, potentially, will remain unsold because of a tariff wall at the U.S. border. In 2024, Ontario greenhouse growers donated more than five million pounds of fresh produce to food banks. 

Looking beyond short-term impacts in Ontario, Lee points out that many Canadian greenhouse growers currently have greenhouses operating in the U.S. in states such as Michigan, Ohio and Georgia. But this is due to the logistical advantages from proximity to customers, not necessarily because of cost-of-production advantages. In fact, labour is one of the largest operation costs for any greenhouse, whether in Canada or the U.S. 

The U.S. tariff strategy as stated by President Trump is an attempt to bring manufacturing home to the U.S. However, a quick and simple alternative to replace the volume of expertly-grown, Canadian produce doesn’t exist. Growers would face obstacles ranging from building permits and construction to skilled, high-tech greenhouse labour. In the most recent year reported, Canada imported agricultural produce valued at $32 billion from the U.S. while exporting $40 billion back to the U.S. Such figures normally would indicate a need on the American side.

Despite so much yet to be determined, growers have already committed to the 2025 crop, in terms of transplants, energy contracts, temporary foreign workers, warehousing, packaging and other input costs. They are running full steam ahead into the peak period of production in April, May, and June. And any Ontario growers with expansion plans already have deposits in place to build another 200 acres by end of year. The cement is poured.  With all this investment in place, what’s next?

Part of OGVG’s scenario planning has been to communicate the potential future support needs of the greenhouse sector to both provincial and federal governments. One glimmer of hope is that the federal government is looking at current gaps in the Business Risk Management Program and a specific program for greenhouse growers due to the unique challenges in the sector. This would be a first, but with an April 28 federal election, this too, is hanging in the balance. 

Future scenarios

Armand Vander Meulen, a major greenhouse grower in Abbotsford, British Columbia, isn’t holding out hope for government assistance. He’d rather look at what’s controllable:  minimum wages and the carbon tax.  

Considering the whole B.C. sector, he says: “B.C. was shipping a negligible amount of product in early March and a token amount was sent to the U.S. to test the tariff procedures. There were challenges in the process. Hopefully they will be resolved if tariffs are enforced again later, however I believe it will not happen for fruits and vegetables.”  

About 50 per cent of what’s produced in British Columbia is exported to the U.S. That translates to a 10-15 per cent hit on overall margins.

“On their own, renewed tariffs are not a nightmare scenario,” says Vander Meulen. “However, if Mexico and Ontario start to limit their U.S. sales and keep produce in Canada, then yes we would see massive impacts on local prices. But why would that happen?  If U.S. sales are restricted, then greenhouse veggie pricing in the states would skyrocket. So, then we would ship there and take the tariff hit.” 

Five provinces away, Sylvain Terrault, president, Cultures Gen-V Inc. headquartered in Ste-Clotilde, Québec, is reaching out to U.S. clients on a regular basis. Gen-V manages 100 acres of conventional and organic greenhouse vegetables, growing tomatoes, peppers, cucumbers and lettuce in four locations. About 35 per cent of Gen-V’s production is exported to the U.S. with retail clients located within a trucking range of 12-16 hours. 

“We lost $20,000 on loads of lettuce headed to the U.S.” says Terrault, referring to early March. “I don’t want to lose my clients.” 

“None of our customers will assume 100 per cent of the tariffs, but several could accept a small percentage. We continue to negotiate and we cannot assume if the retailers will pass along the cost to their consumers or not.”

The March tariffs were paid to a customs broker but to reduce potential border delays, Gen-V has since opened a U.S. dollar account in Chicago to pay any future tariff fees. This will allow the American government to withdraw the required fee whenever his product enters the U.S.

Looking ahead to April 2, Terrault says that it’s a waiting game. The company planted in January and is now poised to harvest in late March and early April. If it comes to it, he will pay the tariff fees rather than allow a few smaller, American-based suppliers to get a toe in the door with his clients. 

“I don’t know how long we can sustain this,” says Terrault. “If the U.S. situation becomes untenable with tariffs reintroduced April 2, then greenhouse vegetable growers coast to coast may try to sell at reduced prices in Canada. That would be a big mess.”

Ironically, the Gordie Howe International Bridge was envisioned by both Canada and the United States as a larger-than-life symbol of bilateral commerce for decades to come. Where’s last year’s handshake between friends, cementing the spans of our shared historical relationship?  Retired? Like a hockey jersey from a bygone era, before the bridge is even officially opened? This is now, elbows up!

In this Digging Deeper podcast, Richard Lee, general manager of the Ontario Greenhouse Vegetable Growers, explains how the $6 million hit may be a forecast of things to come depending on the level of tariffs announced on April 2. It’s a time of monumental change, with new ministers of agriculture at the federal and provincial level. And a federal election set for April 28. Listen here >>