Ontario mattress maker considers U.S. move amid tariff uncertainty

An Ontario mattress manufacturer is considering moving its operations to the United States, as fears of a Canada-U.S. trade dispute grow.

Pioneer & Legend Canada, a Chinese Canadian-owned company that exports more than 60 per cent of its products to the U.S., says the threat of American tariffs is already hurting its bottom line.

Owner Lei Ping said the uncertainty has led to increased costs and the loss of skilled workers.

On March 3, during a period of tense tariff talks between the two countries, Ping’s company shipped 16 truckloads of mattresses to the U.S. But delays at the border meant three trucks were cleared minutes after a key tariff deadline – resulting in an estimated $40,000 in unexpected duties.

“Our profit margin is typically around 10 to 15 per cent,” said Ping. “Those tariffs wiped out our entire profit on that shipment.”

If the tariff concerns persist, Ping said the company may be forced to shut down its Ontario factories.

“The impact is very direct – a complete shutdown,” he said. “Customers are already asking, ‘What’s your plan if there’s a 20 per cent tariff?’ They’re telling us they’d rather buy locally made products.”

The company is weighing whether to absorb potential tariff costs or move its operations to the U.S.

Pioneer & Legend operates two manufacturing facilities in Vaughan and North York, employing more than 100 workers, most of them skilled tradespeople.

Production director Ze Yan Ye, who oversees staff training and quality control, said the ongoing uncertainty has created anxiety among employees.

“Many employees have asked whether their jobs are secure,” Ye said. “Some have already quit and taken jobs in other industries that aren’t affected.”

Ping said only about 10 per cent of the company’s raw materials come from the U.S., but more than 60 per cent of its finished goods are exported there. While the company also supplies major Canadian retail chains, he said the domestic market is much smaller.

Expanding into markets like Europe or Asia would be difficult, Ping said, as those regions already have established local suppliers and shifting the company’s strategy would be a major challenge.

With files from Percta Lam, OMNI News