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Canadian furniture, cabinet industry still ‘reeling’ after Trump pauses tariff spike

The Canadian kitchen cabinet sector, a $4.7-billion industry employing over 25,000, faces layoffs and lost profits despite delayed U.S. tariff hikes, industry leaders said.

  • The Canadian Kitchen Cabinet Association said the U.S. pause of planned tariff increases set for Jan. 1 provided limited relief as the duties continue to devastate Canadian makers.
  • Trump imposed 25 per cent duties in October, with planned increases to 30 per cent and 50 per cent for certain items, framing the tariffs as needed to bolster American industry and protect national security.
  • Manitoba-Based Elias Woodwork employs more than 400 people and exports about 80 per cent to the U.S., but company president Ralph Fehr said 25 per cent duties have eliminated all profit, forcing cost cuts.
  • About 3,500 companies employing more than 25,000 Canadians face pressure after Ottawa's push for an off-ramp was undercut when trade talks were called off in October.
  • With negotiations likely to be tense, the American Kitchen Cabinet Alliance urges policymakers to protect the sector amid a 'Fortress North America' push and Trump's threat to walk away.
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City News broke the news in Toronto, Canada on Friday, January 2, 2026.
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