Shediac-based kitchen cabinet manufacturer, James McKenna, breathed a sigh of relief on New Year’s Eve as a significant tariff increase on his products was delayed just hours before it was set to go into effect. The U.S. President, Donald Trump, had initially imposed a 25 per cent tariff on kitchen cabinets and vanities in September with plans to double it on January 1, 2026. However, on December 31, the White House announced that the tariff hike would be postponed until 2027.
McKenna, the owner of Glenwood Kitchen, expressed gratitude for the delay, stating that his company and its U.S. customers were able to manage the 25 per cent tariff, but a 50 per cent increase would have been unsustainable. Anticipating a loss in business, McKenna had already noticed a decline in orders.
Additionally, the White House also pushed back the tariff hike on upholstered wooden furniture, originally set to increase from 25 per cent to 30 per cent, to January 2027. This delay gives McKenna the opportunity to continue serving his clients in the U.S., although he has been actively diversifying his sales markets to mitigate the impact of unpredictable tariff changes.
Ron Marcolin, the divisional vice-president for New Brunswick and Prince Edward Island with Canadian Manufacturers and Exporters, mentioned that both Canadian and U.S. industry associations have been advocating for the removal of tariffs to demonstrate the added costs borne by American consumers. Marcolin highlighted the importance of exploring alternative markets outside the U.S. to Canadian manufacturers, as Trump’s decisions can change swiftly.
While importers of Canadian goods in the U.S. remain cautiously optimistic about the tariff delays, Marcolin recommended that local manufacturers continue to expand into new markets. He suggested leveraging Atlantic Canada’s ports to access European markets as a potential strategy for companies to explore.
McKenna expressed his ambition to grow his American clientele in the future, emphasizing the popularity of their products in New England. However, he stressed the necessity of removing the tariffs to facilitate business expansion.