“Canadian Cabinet Makers Breathe Easy as U.S. Tariff Delay Hits”

Canadian kitchen cabinet manufacturers are breathing a sigh of relief after the U.S. postponed a planned tariff increase that would have dramatically affected their exports. The 50% tariff on kitchen cabinets and vanities, originally set to take effect on January 1, 2026, has now been delayed until 2027.

James McKenna, owner of Glenwood Kitchen in Shediac, New Brunswick, said the decision could not have come at a better time. “We’ve been able to handle the existing 25% tariff, but doubling it to 50% would have been unmanageable,” McKenna explained. “We were already starting to see a decline in orders, and a 50% increase would have cost us significant business in the U.S.”

The postponement allows companies like Glenwood Kitchen to continue serving their American customers while maintaining stability in their operations. However, McKenna emphasized the importance of market diversification. His company has been expanding sales in Atlantic Canada, Ontario, Bermuda, and exploring opportunities in Mexico with the help of a consultant. “We cannot rely solely on the U.S. market anymore,” he said.

Industry experts have welcomed the news but caution that uncertainty remains. Ron Marcolin, divisional vice-president of Canadian Manufacturers and Exporters for New Brunswick and Prince Edward Island, said the tariff delay is a positive sign but urged companies to keep exploring alternative markets. “U.S. policies can change quickly, so it’s important for manufacturers to test other regions, including Europe via Atlantic Canada ports, to see where exports can grow sustainably,” he explained.

Despite the tariff challenges, McKenna remains optimistic about the U.S. market. “Our products are very popular in New England, and there’s potential to grow significantly once the tariffs are fully removed,” he said.

The U.S. has also postponed a smaller tariff increase on upholstered wooden furniture, moving a planned hike from 25% to 30% until 2027. Both measures highlight the ongoing complexities Canadian exporters face in navigating U.S. trade policies and underscore the importance of strategic planning and market diversification.