Shediac-based kitchen cabinet manufacturer James McKenna expressed relief as a significant tariff increase on his products got postponed just before its scheduled implementation on New Year’s Eve. Initially set by U.S. President Donald Trump at 25 per cent in September, with intentions to double it by January 1, 2026, the White House later announced a delay until 2027.
McKenna, the owner of Glenwood Kitchen, emphasized the impact of this decision on his business, stating that while absorbing a 25 per cent tariff was manageable, a 50 per cent hike would have been unsustainable. The anticipation of reduced orders due to the impending tariff increase had already begun affecting the company.
Moreover, the White House also postponed the planned tariff hike on upholstered wooden furniture from 25 per cent to 30 per cent until January 2027. McKenna acknowledged that this delay allows him to maintain his customer base in the U.S. but emphasized the need to diversify sales markets in response to unpredictable tariff policies.
In light of these developments, McKenna has been redirecting focus towards sales in Atlantic Canada, Ontario, and Bermuda, alongside seeking opportunities in the Mexican market with the aid of a consultant. He emphasized a strategic shift away from heavy reliance on the U.S. market.
Ron Marcolin, the Divisional Vice President for New Brunswick and Prince Edward Island at Canadian Manufacturers and Exporters, highlighted ongoing efforts to advocate for tariff removal and mitigate increased costs for American consumers. Marcolin advised local manufacturers to explore alternative markets beyond the U.S., leveraging Atlantic Canada’s ports for potential access to European markets.
While importers of Canadian goods in the U.S. remain cautiously optimistic following the tariff delay, Marcolin warned of the volatility in Trump’s decisions and urged manufacturers to continue diversifying their sales channels. McKenna shared aspirations to expand his business in the U.S. but stressed the necessity of tariff elimination for sustainable growth in that market.