The Canadian Kitchen Cabinet Association has expressed gratitude for the delay in the imposition of higher tariffs on furniture, cabinets, and vanities by U.S. President Donald Trump. However, the industry continues to suffer significantly due to the existing tariffs. Trump initially imposed 25 per cent tariffs in October but decided to defer an increase to 30 per cent for upholstered furniture and 50 per cent for cabinets and vanities that was scheduled for January 1.
Luke Elias, the association’s vice-president, acknowledged the relief of the 50 per cent postponement but highlighted the ongoing challenges posed by the 25 per cent tariffs. The kitchen cabinet manufacturing industry in Canada, valued at $4.7 billion, exports around $600 million worth of products annually, facing additional strain from the tariffs alongside a sluggish Canadian housing market.
Ralph Fehr, president of Manitoba-based Elias Woodwork, emphasized the detrimental impact of the 25 per cent tariffs on their business, which heavily relies on exporting to the United States. While the company primarily uses American materials like hardwood lumber from the Appalachians, the tariffs have eroded profitability. Fehr expressed hope for governmental intervention to reach a resolution beneficial to the industry.
The industry has witnessed layoffs since the implementation of Trump’s tariffs, with warnings of impending job losses in December. Elias highlighted the urgency of addressing industry concerns in the review of the Canada-United States-Mexico Agreement (CUSMA), urging Ottawa to extend procurement policies and address parts imports undercutting the domestic market.
Furthermore, the American Kitchen Cabinet Alliance has accused Canada and Mexico of facilitating circumvention of anti-dumping measures on cabinets from China. In preparation for the CUSMA review, efforts are underway to strengthen rules-of-origin requirements to prevent cheap imports from entering North America.
As negotiations loom and tensions rise, industry representatives stress the importance of not overlooking the cabinet and furniture sector amidst discussions on high-profile tariff issues. With thousands of companies and tens of thousands of Canadian jobs at stake, industry leaders emphasize the significance of addressing the challenges faced by the sector.