Shediac-based kitchen cabinet manufacturer James McKenna breathed a sigh of relief on New Year’s Eve as a significant tariff increase on his products was delayed just hours before it was set to take effect. The tariff hike, initiated by U.S. President Donald Trump in September at 25 per cent with plans to double it on January 1, 2026, was postponed until 2027 by the White House.
McKenna, the owner of Glenwood Kitchen, expressed gratitude for the delay, stating that while his company and U.S. clients could handle the initial 25 per cent tariff, a 50 per cent increase would have been unmanageable. Anticipating a loss in business due to the impending hike, McKenna had already noticed a decline in orders.
In addition to the kitchen cabinets and vanities, the White House also postponed the tariff hike on upholstered wooden furniture from 25 per cent to 30 per cent until January 2027. This delay allows McKenna to continue serving his clients in the U.S., although his company has been actively diversifying its sales markets to mitigate the impact of unpredictable tariff changes.
McKenna shared that Glenwood Kitchen has been concentrating on sales in Atlantic Canada, Ontario, and Bermuda, while also enlisting a consultant to facilitate market entry into Mexico. Emphasizing the need to reduce reliance on the U.S., he affirmed the company’s commitment to expanding beyond traditional markets.
Ron Marcolin, the divisional vice-president for New Brunswick and Prince Edward Island at Canadian Manufacturers and Exporters, mentioned that efforts have been made to lobby for the removal of tariffs, highlighting the potential cost burden on American consumers. Importers of Canadian goods in the U.S. are cautiously optimistic following the delay, but Marcolin advised local manufacturers to continue diversifying their sales territories to adapt to changing trade policies.
Marcolin suggested exploring European markets via Atlantic Canada’s ports as an alternative strategy for companies. While McKenna remains hopeful about growing his American client base, he stressed the necessity of tariff elimination to facilitate business expansion and meet market demands.
