The Uncertain Future of Tariffs: A Challenge for Canadian Manufacturers and aVenco

The global trade landscape is shifting, and for Canadian manufacturers, the uncertainty surrounding tariffs has become a significant concern. As we navigate these changes, one thing is becoming increasingly clear: if tariffs between Canada and the U.S. persist, our ability to compete in the North American market will be severely impacted. In such a scenario, our only viable strategy will be to focus on our local market in Canada.

This challenge is particularly pressing for aVenco, a majority women-owned company specializing in converting parchment paper. We have built a company that offers high-quality parchment paper products at highly competitive prices. Yet, we face the same dilemma as many other Canadian manufacturers: if retailers don’t support local production, survival becomes an uphill battle.

The Reality of Tariffs and Their Consequences

Tariffs are meant to protect domestic industries, but they also create barriers to growth for small and medium-sized businesses (SMEs) that rely on cross-border trade. Many Canadian manufacturers, including aVenco, were built on the premise of serving North American demand. If tariffs make it unfeasible to sell into the U.S., our ability to scale and remain competitive will be drastically reduced.

In theory, this could lead to a stronger domestic market, with Canadian companies supporting one another and fostering local economic growth. However, the reality we face is far more challenging.

The Role of Canadian Retailers: Supporting Local or Looking Abroad?

A significant challenge lies in the purchasing decisions of Canadian retailers. While consumers increasingly express interest in supporting locally made products, many large retailers continue to prioritize cheaper, imported goods—especially from China.

Why does this happen?

1. Cost Pressure – Imported products are often cheaper due to lower labor costs, lower quality, economies of scale, and government subsidies in foreign countries.

2. Retailer Margins – Large retailers focus on maximizing profits, and lower-cost imports allow for higher margins.

3. Supply Chain Habits – Many retailers have long-standing supplier relationships with manufacturers overseas, making them hesitant to shift to local suppliers.

As a result, Canadian businesses like aVenco struggle to compete, not necessarily due to product quality or innovation, but because we lack fair access to our own market.

Alternative Options: Direct-to-Consumer Sales?

If retailers continue to favor imports over local products, our only other survival strategy may be to sell directly to consumers online. This approach works well for many industries, but does it make sense for parchment paper?

Would consumers seriously buy their parchment paper online? While some niche markets (such as professional bakers or environmentally conscious buyers) may be open to this, the reality is that most people pick up their parchment paper while grocery shopping, not through an e-commerce platform.

Even if we were to take this route, we have no experience in direct-to-consumer sales. Building an online presence, managing logistics, and competing with retail giants in the digital space would be a significant challenge. But if retailers won’t support us, what choice do we have?

The Future of Canadian Manufacturing Depends on Retailers’ Choices

For Canadian businesses like aVenco to thrive under these new conditions, we need a shift in mindset from Canadian retailers. If we are forced to focus solely on the Canadian market, retailers must do their part by:

1. Prioritizing Canadian-made products in their sourcing and procurement strategies.

2. Educating consumers about the benefits of supporting local businesses.

3. Recognizing the long-term value of a strong domestic supply chain.

Without this shift, many small manufacturers—including the company we worked hard to found—may not survive.

The Call to Action: A Collective Effort for a Sustainable Future

The war on tariffs may be out of our hands, but the decisions made by Canadian businesses, policymakers, and retailers will determine the future of our manufacturing sector. If we are forced to go local, we need a fair chance to succeed.

So, the question remains: Will Canadian retailers step up to support the businesses that create jobs and drive our local economy, or will they continue to prioritize lower costs at the expense of domestic industry?

For companies like aVenco, the answer to this question will determine whether we grow and thrive—or struggle and disappear. Let’s hope it’s the right one.

For more information, please contact Kathleen Chapman 416-892-5527 kathy@avenco.us

About aVenco: 

aVenco is a global converter of parchment baking paper rolls with a strong commitment to sustainability and innovation. Majority-owned by women, the company operates two strategically located plants with an annual production capacity of 20 million units. As a subsidiary of Avere Corporation and an exclusive distributor of Primabake, aVenco provides high-quality, environmentally responsible parchment paper products to customers worldwide.