We're looking at a couple of different things.
First, to back up a little bit so that you understand, our facilities are in Tennessee and Indiana. We make die-cast aluminum ovens. We have seven die-cast cells in Tennessee. Those components would flow to our Canadian facility and also to our U.S. facilities. Likewise, in Waterloo we make injection-moulded components that we would then supply to our U.S. facilities. In a lot of ways, then, our NAFTA footprint is quite strong. We're able to move parts very economically and get them to the right place when you need them.
To me, that is the first piece. We have an issue at the moment where we're captured in that 10% retaliatory tariff. We have components coming that we need for production in Ontario to be able to ship in Canada and all over the world, and we're now getting hit with a tariff on them. Those would be cast aluminum ovens, shelves, you name it—whatever those components happen to be that are coming from those particular facilities. Right out of the gate we want to deal with those issues that are now impeding our ability to compete.
The second issue is around how we then capitalize on that opportunity for Europe. When we looked at it, we said there was a strong opportunity to open up that market with increased capacity in our Waterloo facility. We need about 90,000 square feet to accomplish that. We physically don't have the footprint today to be able to run that product economically through the plant, and we want to make that investment here.
At the moment, for every barbeque we're shipping through our U.S. facility, going to Europe, we're trying to hold our pricing so that our customers can maintain those retail price points and we can compete. We're dealing with the likes of Weber, who's doing a significant amount of their product offshore. They're competing with us in that market space, so we have to hold those price points. The goal is to move that production where it's targeted for European Union customers into Canada, leverage CETA and be able to supply that product from Canada to Europe.
I hope that answers it.