Tomatoes grow in a greenhouse at Windset Farms, in Delta, B.C., on Friday, January 24, 2025. THE CANADIAN PRESS
A fresh wave of U.S. tariffs on Canadian imports has sent shockwaves through Canada’s greenhouse sector, which heavily depends on exports to the United States. If American importers reduce their purchases due to the trade war, greenhouse growers could suffer severe losses.
Millions Lost in Just Three Days
According to Richard Lee, Executive Director of Ontario Greenhouse Vegetable Growers, the impact has been immediate.
"These tariffs have significant consequences," he said. In just three days, Ontario’s greenhouse industry lost over $6 million due to reduced exports.
On March 4, U.S. President Donald Trump imposed tariffs on Canadian and Mexican imports. However, two days later, he announced a temporary one-month pause for goods meeting the Canada-U.S.-Mexico Agreement (CUSMA) rules-of-origin requirements. Despite this pause, industry experts warn of ongoing instability.
Greenhouse Sector at High Risk
Canada’s fruit and vegetable industry is deeply linked to the U.S. market, but greenhouses are particularly vulnerable. In 2023, 99.5% of $1.7 billion worth of Canadian greenhouse vegetables were exported to the U.S., according to Agriculture and Agri-Food Canada.
Lee explained that both countries have a seasonal trade balance—Canada imports lettuce in winter, while the U.S. imports tomatoes, cucumbers, and peppers from Canadian greenhouses.
"It’s a very symbiotic relationship," he noted.
But with tariffs in place, a significant portion of this trade could be disrupted, leaving tons of fresh produce without a market.
A Surplus Canada Can’t Consume
The rapid growth of Canada’s greenhouse sector means it produces far more than the country can consume.
"The produce we grow in Ontario alone could feed Canada ten times over," said Lee.
Industry leaders worry that if U.S. demand drops, Canadian supermarkets won’t be able to absorb the excess supply.
"How many salads can we eat?" joked Dana McCauley, CEO of the Canadian Food Innovation Network.
Greenhouses mainly produce tomatoes, cucumbers, and peppers, which made up 92% of the industry’s financial value in 2023. While lettuce and strawberries are gaining popularity, they remain small-scale crops.
Expanding Markets: A Tough Challenge
Diversifying export markets is easier said than done. Fresh vegetables don’t travel well, making it difficult to find buyers outside of North America.
Some farms are investing in new greenhouse technologies to expand their crop variety. Lee mentioned that tropical fruits like papayas and bananas are being tested.
"They’re hoping these innovations will pay off by opening new market opportunities," he said.
A 2024 RBC report highlighted spinach, bananas, coffee, okra, and berries as potential future crops for Canada’s greenhouse sector. However, challenges like energy, water, and infrastructure continue to limit expansion.
Vertical Farms See an Opportunity
While tariffs hurt greenhouse growers, vertical farms—which grow crops in stacked layers using hydroponics—are seeing a boost in demand.
Lenny Louis, CEO of Vision Greens in Ontario, reported a surge in interest from grocers looking for Canadian-grown lettuce and greens.
"It has changed the mindset of retailers. They now want more Canadian products on shelves," he said.
However, McCauley noted that vertical farm produce is often more expensive, though scaling up operations could help lower prices.
Vision Greens recently raised $20 million to expand its facilities and triple production.
"With or without tariffs, I think vertical farming is here to stay," Louis said.
What’s Next?
For now, the greenhouse industry faces an uncertain future. Without stable U.S. trade policies, growers must explore new markets and technologies to survive. Whether through diversification or innovation, Canada’s greenhouse sector must adapt—or risk major losses.
