Shediac-based kitchen cabinet manufacturer, James McKenna, expressed relief on the last day of the year when a significant tariff increase on his products was postponed just hours before it was scheduled to come into effect. The U.S. President, Donald Trump, had initially imposed a 25% tariff on kitchen cabinets and vanities in September with plans to double it on January 1, 2026. However, the White House announced on December 31 that the tariff hike would be deferred until 2027.
McKenna, the owner of Glenwood Kitchen, stated that while his company and U.S. clients managed to absorb the initial 25% tariff, a 50% increase would have been too burdensome. He noted a decline in orders as a result of the looming tariff hike. Additionally, the White House also postponed a tariff increase on upholstered wooden furniture from 25% to 30% until January 2027.
The delay in tariff hikes allows McKenna to continue serving his customers in the U.S. market. However, in response to unpredictable tariff changes, he has been actively diversifying his sales into regions such as Atlantic Canada, Ontario, and Bermuda. Moreover, the company has enlisted the help of a consultant to explore opportunities in the Mexican market, aiming to reduce reliance on the U.S. market in the future.
Ron Marcolin, the divisional vice-president for New Brunswick and Prince Edward Island at Canadian Manufacturers and Exporters, highlighted ongoing efforts by industry associations to advocate for tariff removal. He emphasized the potential impact of increased costs on American consumers due to tariffs. Importers of Canadian goods in the U.S. remain cautiously optimistic, urging Canadian manufacturers to explore alternative markets and consider utilizing Atlantic Canada’s ports to access European markets.
McKenna expressed aspirations to grow his American clientele. However, he emphasized the necessity of tariff removal to facilitate business expansion in regions like New England, where there is a strong demand for his products. He remains hopeful that the tariffs will be lifted to support future growth opportunities.