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Muskoka chair maker's tariff woes highlight challenges for mom-and-pop manufacturers
DFC Woodworks Inc., a Canadian company making Muskoka chairs since 1955, exports about 70% of its furniture to the United States and now faces a 50% U.S. tariff on these goods.
The company is deciding whether to absorb the tariff costs, raise prices and risk U.S. sales, or move most manufacturing to the United States to avoid the tariff.
The company president, François Bruneau, acknowledges a heavy tariff bill and a tough decision ahead.
This situation highlights challenges for small Canadian manufacturers who may lack the resources and expertise to handle trade wars compared to larger corporations, according to professor Fen Hampson.