In the midst of the escalating trade tensions between Canada and the U.S., CBC photographer Evan Mitsui has been investigating how businesses in southern Ontario are being impacted by the new tariffs. Businesses dealing with products such as furniture, live flowers, and circuit boards affected by the tariffs are facing a common theme of uncertainty.
Saeid Mohmedi, the founder and president of MIS Electronics Inc. in Richmond Hill, Ont., has experienced various challenges in his 25 years in business, but nothing quite like the current situation. Mohmedi expressed uncertainty about the future of his company in the next three to six months, attributing it to the unpredictable trade environment.
MIS Electronics specializes in manufacturing printed circuit boards (PCBs) for clients in industries such as automotive and electronics. Mohmedi mentioned that while his primary clients are Canadian companies, many of them export to the U.S., which means the products they produce are affected by the Canadian content.
The trade war has led to increased costs for Mohmedi’s business, as the procurement process for components, primarily sourced from Taiwanese companies, has become more complex and costly due to the indirect route through the U.S. This escalation in expenses is challenging for a business like MIS that heavily relies on research and development and long-term planning.
The tech industry in Ontario, particularly in Markham and Richmond Hill, is known for its specialization in PCB production. While major multinationals like Siemens and Celestica play a significant role, smaller companies like MIS cater to business-to-business orders and contribute to various electronic devices, including handheld radios, EV chargers, slot machines, and medical devices.
MIS, with its 70 employees and 47,000 square feet of manufacturing space, represents the typical small-to-medium-sized business that is directly impacted by the ongoing trade dispute. The recent Section 338 tariffs, which specifically target Canadian-made PCBs at a 50% rate, have put companies like MIS in a challenging position.
When asked about coping strategies, Mohmedi emphasized the importance of supporting Canadian businesses and domestic manufacturing. He initiated another company producing touchless faucets using parts from MIS, all manufactured in Canada. Mohmedi sees an opportunity in increasing demand for Canadian-made products, believing that domestic production can be more cost-effective than importing from the U.S.