The Canadian Kitchen Cabinet Association expressed gratitude for the delay in tariff increases on furniture, cabinets, and vanities by U.S. President Donald Trump. However, the industry continues to suffer from the existing duties. Trump had imposed 25% tariffs in October and had planned to raise them to 30% for upholstered furniture and 50% for cabinets and vanities from January 1, but the increase has been paused.
Luke Elias, the association’s vice-president, acknowledged the relief from a 50% tariff but emphasized that the industry is still struggling with the 25% duty. The kitchen cabinet manufacturing sector, valued at $4.7 billion in Canada, exports around $600 million worth of products annually. The tariffs have added to the challenges faced by the industry amidst a soft Canadian housing market.
Ralph Fehr, the president of Manitoba-based Elias Woodwork, highlighted the impact of the tariffs on his company, which employs over 400 people and exports 80% of its products to the U.S. Fehr noted that while the 25% tariffs are damaging, a 50% duty would have been catastrophic for the business.
Fehr mentioned that his company utilizes American materials like hardwood lumber from the Appalachians to manufacture products for sale in the U.S. He expressed hope for government support to reach a favorable agreement to alleviate the financial strain caused by the tariffs.
The industry has witnessed layoffs following the implementation of Trump’s tariffs in October, with concerns about further job losses raised in recent industry meetings. Elias emphasized the urgency of addressing the industry’s challenges and ensuring it is not overshadowed by other tariff issues.
Looking ahead, discussions around the trilateral trade agreement, CUSMA, are expected to be tense as the American Kitchen Cabinet Alliance seeks to enhance rules-of-origin requirements to prevent the influx of low-cost products into Canada and Mexico. Trump’s stance on trade negotiations adds uncertainty to the situation, with Ottawa striving to find solutions to the sectoral duties imposed by the U.S.
As the CUSMA review looms, industry representatives stress the importance of not neglecting the cabinet and furniture sector, which supports thousands of Canadian jobs and plays a significant role in households across the country.
