Shediac-based kitchen cabinet manufacturer James McKenna experienced a sense of relief on New Year’s Eve as a significant tariff increase on his products was postponed just hours before it was set 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 by January 1, 2026. However, on December 31, the White House announced that the tariff hike would be delayed until 2027.
McKenna, the owner of Glenwood Kitchen, expressed gratitude for the decision, stating that while his company and American customers could manage the 25% tariff, a 50% increase would have been unsustainable. Anticipating a decline in orders due to the impending tariff hike, McKenna emphasized the significance of the postponement for his business.
In addition to delaying the tariff escalation on kitchen cabinets, the White House also pushed back the increase on upholstered wooden furniture from 25% to 30% until January 2027.
McKenna highlighted that the delay provides an opportunity to continue serving clients in the U.S. market. Nonetheless, he has been proactively diversifying his sales markets to mitigate the impact of unpredictable tariff changes. Glenwood Kitchen has been focusing on expanding sales in Atlantic Canada, Ontario, and Bermuda, and has enlisted the help of a consultant to explore opportunities in the Mexican market. McKenna emphasized the company’s shift away from relying solely on the U.S. market.
Ron Marcolin, the divisional vice president for New Brunswick and Prince Edward Island at Canadian Manufacturers and Exporters, underscored the lobbying efforts to eliminate the tariffs. He mentioned ongoing discussions with U.S. counterparts to demonstrate the burden on American consumers due to the tariffs and expressed optimism that this delay could signal a shift in tariff policies for other products.
While importers of Canadian goods in the U.S. remain cautiously optimistic, Marcolin advised local manufacturers to continue diversifying their sales markets. He suggested exploring European markets via Atlantic Canada’s ports as an alternative. McKenna shared his aspirations to grow his American clientele in the future but emphasized the necessity of tariff removal to facilitate business expansion.
The decision to postpone the tariff hikes has provided a temporary respite for manufacturers like McKenna, prompting them to explore new market opportunities beyond the U.S. to ensure business sustainability and growth.