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Shediac kitchen cabinet manufacturer James McKenna heaved a sigh of relief on New Year’s Eve, when a massive tariff hike on his products was postponed — hours before it was supposed to take effect.
U.S. President Donald Trump introduced a 25 per cent tariff on kitchen cabinets and vanities in September, and pledged to double it on Jan. 1, 2026. But on Dec. 31, the White House announced the tariff hike would be delayed until 2027.
“It means a lot for us,” said McKenna, owner of Glenwood Kitchen.
He said his company and its U.S. customers were able to absorb the 25 per cent tariff, but “50 per cent was not manageable.”
“We knew we were going to lose business,” he said. “We already started to see orders decrease.”
The White House also postponed its tariff hike on upholstered wooden furniture, from 25 per cent to 30 per cent, until January 2027.
McKenna said the delay will allow him to continue serving his clients south of the border. But he has been diversifying his market to cope with unpredictable tariff announcements.
He said his company has been focusing more on sales throughout Atlantic Canada, Ontario and Bermuda. It has also hired a consultant to help it reach the Mexican market.
“We will not be relying on the U.S. like we used to in the past,” he said.
U.S. importers ‘cautiously optimistic’
Ron Marcolin is the divisional vice-president for New Brunswick and Prince Edward Island with Canadian Manufacturers and Exporters. The association represents manufacturers of all sizes across the country.
He said his organization, and its counterparts in the U.S., have been lobbying to remove the tariffs. Their aim is to show the increased costs that an average American would have to absorb because of the tariffs.
“So we believe that Trump has heard some of those lobbyists and we certainly think this could be, possibly could be, the start of a listening on other commodities.”
Marcolin said he has spoken to importers of Canadian goods in the U.S. He said they remain “cautiously optimistic.”
But he also encouraged Canadian manufacturers to keep diversifying their sales markets, noting that Trump is “known to change his mind very quickly.”
One option for companies to consider would be using Atlantic Canada’s ports to reach European markets, Marcolin said.
“Test other markets to see if, in fact, it is a valuable market to export to,” he said.
McKenna said he hopes to expand his American clientele in the future, but that won’t be viable as long as the tariffs are in place.
“They really like our product in New England,” he said. “I don’t think we’ll have any issues increasing the business, but the tariffs need to be removed.”