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“Canada’s Furniture Sector Struggles to Stay Afloat Amidst Tariff Suspensions”

The year 2025 has come to a close, but the impact of tariffs lingers on with unresolved issues.

Peter Raja, the longstanding president of Norelco Cabinets in Kelowna, shared his concerns about the challenges faced by his business due to the tariffs. With a significant portion of his business relying on exports to the U.S., the introduction of tariffs in September 2025 led to layoffs and a struggle to stay afloat. Despite opening a shop in Hawaii to offset some loss of sales, Raja expressed the difficulty of balancing operations between different locations.

Notably, Raja stressed that without a halt in tariff escalation, further layoffs may be inevitable to sustain the business, with potential implications for shifting labor to the U.S.

The impact of tariffs is not unique to Norelco Cabinets, as the Canadian Kitchen Cabinet Association (CKCA) highlighted that about a quarter of industry workers nationwide faced layoffs in the previous year due to tariff pressures. While the temporary pause on tariffs brings relief, CKCA vice-president Luke Elias emphasized the need for a lasting solution to ensure the industry’s stability.

Elias also pointed out the challenge of competing with low-cost imports from various countries, indicating that local manufacturers must navigate multiple hurdles to remain competitive in the market.