President Trump delays tariff hike on upholstered furniture and wood cabinets as trade talks continue, offering temporary relief to Canadian manufacturers. The delay, until January 1, 2027, comes as the U.S. works towards trade agreements with multiple countries. Canadian cabinet and furniture makers, however, warn of a 'bloodbath' in an industry already struggling with cheap imports from Asia and weak domestic demand. The delay is a welcome relief, but it's not a solution, says the Canadian Kitchen Cabinet Association. Canadian executives fear the list of goods subject to tariffs may expand, and industry groups call for greater support from Ottawa, including protection from low-cost Asian products. The issue has also sparked a debate among American kitchen cabinet manufacturers, who are concerned about 'below fair market value' goods from Asia entering the U.S. market via Canada. The Canadian government's 'Buy Canadian' procurement policies are seen as a positive step, but industry representatives want them applied more broadly. The Wood Manufacturing Cluster of Ontario calls for a 'made-in-Canada' policy for cabinetry and furniture in government-sponsored housing initiatives. Despite the delay, the trade war's impact on the industry remains a pressing concern, with job losses and plant closures already occurring.
