Shediac-based kitchen cabinet manufacturer James McKenna expressed relief on the last day of the year 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, initially imposed a 25 percent 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 a delay in the tariff hike until 2027.
McKenna, the owner of Glenwood Kitchen, stated that the 25 percent tariff was manageable for his company and its U.S. customers, but a 50 percent increase would have been too much to bear. Consequently, they had already started to witness a decline in orders, anticipating a loss of business due to the higher tariff.
Moreover, the White House also postponed its planned tariff hike on upholstered wooden furniture from 25 percent to 30 percent until January 2027. McKenna mentioned that this delay would enable his company to maintain its client base in the U.S., but as a precaution against unpredictable tariff changes, they have been expanding their market outreach to regions like Atlantic Canada, Ontario, Bermuda, and are seeking opportunities in the Mexican market.
In a related development, Ron Marcolin, the divisional vice-president for New Brunswick and Prince Edward Island at Canadian Manufacturers and Exporters, revealed that efforts were being made to lobby for the removal of tariffs. Marcolin mentioned that Trump’s decision to postpone the tariff hikes was welcomed, but he advised local manufacturers to explore alternative markets beyond the U.S. to mitigate risks associated with sudden policy shifts.
Marcolin emphasized the importance of diversifying sales markets and suggested leveraging Atlantic Canada’s ports to access European markets as a potential strategy for businesses. Despite the hopes of expanding business with American clients in the future, McKenna stressed the necessity of lifting tariffs to facilitate growth and meet demand from regions like New England where their products are well-received.