Lingering Tariff Threats Hurting Canadian Businesses

U.S. President Donald Trump continues to threaten tariffs, which is taking its toll on some businesses in the Canadian furniture industry.

Despite the temporary tariff reprieve of at least 30 days that was announced Feb. 3, ready-to-assemble furniture specialist South Shore Furniture has cut 115 jobs in Quebec, as it restructures its business model. The furniture manufacturer cited in a news release that the prospect of the tariffs’ return has affected sales, with American retailers increasing their imports from Asia over Canada. Seventy per cent of South Shore’s products are shipped stateside.

Tariff uncertainty is also causing unease in major furniture hubs in the U.S., specifically High Point, N.C. The state’s economist Andrew Greenland told ABC News that the ‘home furnishings capital of the world’ is on edge just two months before the spring edition of High Point Market. Specifically, there are concerns some Canadian retailers could shy away from doing business there.

If the Trump administration moves to impose the previously announced tariffs on March 4, all inbound products from Canada will be subject to a 25 per cent tariff, except for Canadian energy products, which would be subject to a 10 per cent tariff.

This would have wide-ranging impacts on businesses north of the 49th parallel. Household furniture accounted for $1.53 billion in Canadian exports to the U.S. in 2023.

In turn, this country’s federal government has said it will impose retaliatory tariffs on $155-billion of goods originating in the U.S., and they will remain in effect until President Trump eliminates the tariffs against Canada.

Of the more than 1,200 items on Canada’s official tariff list, 45 have the word ‘furniture’ in their descriptions and include chests, cabinets, display counters, showcases “and the like;” furniture moving pads; base metal mountings suitable for furniture; seats of cane, osier or bamboo; metal furniture used in offices; wooden furniture used in offices, kitchens and bedrooms; other metal and wooden furniture; furniture of other materials, including cane, osier and bamboo; seats with wooden frames, swivel seats; among others.

In 2023, the U.S. exported more furniture to Canada than any other country and by a wide margin at more than $1.445 billion.

Other furnishing items to be tariffed are mattress supports and articles of bedding like mattresses, quilts, eiderdowns, cushions, pouffes and pillows “fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered.”

More than 170 types of wood and wood substitutes are named in various descriptions, including pine, mahogany and teak, items listed include particleboard; oriented strand board and fibreboard; plywood and veneered panels; builders’ joinery and carpentry of wood; hand tools used for woodworking; and more.