The Canadian Kitchen Cabinet Association has expressed mixed feelings towards the recent announcement by U.S. President Donald Trump regarding the postponement of tariff increases on furniture, cabinets, and vanities. Despite the relief from the proposed tariff hikes set for January 1st, the industry continues to suffer from the existing duties.
President Trump had initially imposed a 25% tariff on the sector in October, delaying a further escalation to 30% for upholstered furniture and 50% for cabinets and vanities. Luke Elias, the association’s vice-president, emphasized the ongoing challenges faced by the industry, stating that the impact of the existing 25% tariff cannot be easily mitigated.
The kitchen cabinet manufacturing sector in Canada, valued at $4.7 billion, heavily relies on exports amounting to approximately $600 million annually. The imposition of Trump’s tariffs has exacerbated the industry’s struggles, compounded by a soft Canadian housing market.
Ralph Fehr, the president of Manitoba-based Elias Woodwork, highlighted the detrimental effects of the 25% tariffs on his company, which exports 80% of its products to the U.S. While acknowledging the slight relief from the proposed 50% duty, Fehr emphasized the potentially catastrophic consequences of such a significant increase.
Fehr underscored the reliance of his company on American materials, such as hardwood lumber sourced from the Appalachians, which are transformed into finished goods for sale in the United States. He called for governmental support to negotiate a resolution that would safeguard businesses like his, which have been severely impacted by the tariffs.
The industry has witnessed layoffs following the implementation of Trump’s tariffs, with multiple companies foreseeing imminent job losses during industry meetings in December. Elias cautioned that the situation is critical, with many companies facing dire circumstances.
Looking ahead, Elias highlighted the need for Ottawa to extend its support through taxpayer incentives and address issues related to parts imports at below market value. Concerns have been raised regarding the influx of low-priced parts from Asia, assembled in Canada, and sold in the U.S. under a misleading “made-in-Canada” label, undermining the domestic industry.
As the review of the trilateral trade agreement, CUSMA, approaches, the American Kitchen Cabinet Alliance aims to reinforce rules-of-origin requirements to prevent the influx of cheap products into Canada and Mexico. Tensions are expected during the negotiations, with Trump emphasizing the possibility of withdrawing from the trade pact.
Amidst uncertainties surrounding the trade talks, Elias stressed the importance of not overlooking the cabinet and furniture industry amidst higher-profile tariff discussions. With thousands of companies and tens of thousands of Canadians employed in the sector, Elias emphasized the industry’s significance in every household.