For entrepreneurs Anthony and Nancy Wingham, looming U.S. tariffs mean hastening efforts to move their company’s manufacturing and expansion into the beauty market south of the border.
“As much as we're worried about the tariffs, I guess it's just speeding that process up,” said Anthony Wingham, a Metis co-owner of Nuez Acres, a Langley beauty company offering pecan oil-based and waterless products.
Although a possible trade war could have significant impacts to businesses countrywide, Indigenous businesses would be disproportionately impacted by tariffs, according to the Canadian Council for Indigenous Business.
The council said in a Feb. 6 announcement that of the Canadian Indigenous businesses that export, 19 per cent of their revenues come from exports to the U.S. This number is as high as 90 per cent for some businesses.
Indigenous businesses still looking south for expansion
The Winghams are currently working on building stock across the border in case tariffs come into play next month.
However, the influx of Canadian companies rushing to do the same has posed some logistical challenges.
“That costs money in terms of building inventory, the cost of shipping, the cost of the broker, the cost of the warehousing,” said Nancy Wingham.
Logistical supply-and-demand constraints have increased shipping costs over the last month, she said. Nuez Acres’ first shipment of seven pallets was around $900 to ship – shipping one pallet is now $700.
Despite those challenges, the Winghams remain optimistic about their expansion plans.
A recent distribution deal with United Natural Foods Inc. will see their products launch in the U.S. next month. This deal will also facilitate the storage of their products in the natural product distributor’s warehouses.
“We're not looking at this as keeping us out of the States, it might just push us to actually manufacture there a little bit sooner,” said Anthony Wingham.
Other businesses shift focus to the local market
Other Indigenous-owned businesses are shifting their eyes back to the domestic market.
“We were exporting into the U.S. We have cut that off now,” said Satya Organics Inc. founder Patrice Mousseau. “There is a lot of opportunity here in Canada.”
The North Vancouver-based skincare company uses organic ingredients to treat various skin conditions, including eczema.
Amidst a potential trade war, the company will now focus on domestic growth and use a third party to deliver their products to customers south of the border. U.S. exports make up between 25 per cent and 33 per cent of the company’s revenue.
“We have more than enough opportunity to create strong, successful, long-term local businesses right here in our country,” Mousseau said, adding exports to other countries is also an option.
