A change to Canada’s counter-tariffs against the U.S. should help soften the blow to consumers’ grocery bills, according to the association representing greenhouse growers. In its latest counter-tariffs rolled out on Sept. 8, the federal government targeted corrugated boxes and cartons with a 50 per cent tariff. However, concerns from the food sector, where boxes are used on a regular basis, prompted changes. The government has granted a remission, where importers will not pay tariffs on some corrugated items used for the production of any agricultural product or in the packaging of a food product or beverage. Richard Lee, the Executive Director of the Ontario Greenhouse Vegetable Growers, said the change was needed to avoid large cost increases. “Sales range anywhere from $8 to $15 for a case of cucumbers. Well, those boxes account for eight per cent of the cost of production, so could you imagine a 50 per cent increase to that?” Lee said. About 50 per cent of the boxes used by Ontario greenhouse growers come from the U.S., Lee said. In recent months, producers have already seen price increases from manufacturers. “We can’t absorb those costs through the value chain; the consumer ultimately pays for those increases and starts contributing further to the affordability crisis we’re seeing with families across North America,” Lee said. Boxes are used regularly to hold produce and protect it during travel. As prices continue to rise across the board, Lee noted relief from the counter tariffs couldn’t have come at a better time. “Ultimately, everything that we can do to save or mitigate any continued increase or planned increases we’ll welcome and continue to advocate for,” Lee said. The initial counter tariffs were cause for concern for Dave Epp, the Conservative MP for Chatham-Kent-Leamington. Representing an agriculturally rich riding, Epp said he’s not opposed to counter tariffs, but they require adequate consultation. “What I’ve heard from the industries affected is that there simply wasn’t a consultation done ahead,” Epp told CTV News. “So, when you begin to counter-tariff aspects of the costs that aren’t easily replaced, you simply add on to the costs of food to our consumers.” Though Canada is home to box producers, there’s been questions about whether their supply can fill the excess demand. Epp said the federal government needs to “change the business climate” to ensure companies who want to expand, such as box producers, can do so and succeed. “We have a domestic carton manufacturing, and I wish we had the capacity that we could support and supply all of our needs. The reality is that the business climate in our country has not been sufficient to allow that capacity to develop,” Epp said. For the OGVG, Lee said they would welcome an increase in domestic carton and box production but added their purchasing decisions often come down to the most cost-effective products.
