Canadian kitchen cabinet industry relieved with U.S. president’s announcement not to raise tariffs – and calls to remove 25% rate
PRESS RELEASE
Canadian kitchen cabinet industry relieved with U.S. president’s announcement not to raise tariffs – and calls to remove 25% rate
January 5, 2025 / Ottawa, ON – With welcomed news that U.S. tariffs on kitchen cabinets and vanities will not be raised to 50%, the Canadian Kitchen Cabinet Association (CKCA) is calling for the existing 25% tariffs to be removed entirely and for coordinated action by both governments to restore fair and balanced trade.
Citing ongoing Canada–U.S. trade talks, U.S. President Donald Trump signed a New Year’s Eve proclamation to delay the increased tariffs on kitchen cabinets, vanities, and upholstered furniture for a period of one year. The tariff increase from 25% to 50% on Canadian-manufactured products was scheduled to take effect January 1, 2026.
“There is real relief across the community of Canadian manufacturers and suppliers, but relief is not resolution”, says Luke Elias, CKCA Vice-President. Our industry continues to call for the complete removal of the existing 25% tariff, which is still highly punitive and continues to distort trade and pricing for businesses and consumers on both sides of the border.”
Elias explains that the imposition of U.S. tariffs has disrupted longstanding trade flows between the two countries, created uncertainty around future orders, and elevated costs throughout the supply chain. In the U.S., the tariffs have contributed to higher costs for new home construction and kitchen renovations.
Call for Canadian government action
While welcoming the federal government’s Build Canada Homes Initiative, which includes a clear buy Canadian requirement for government procurement, CKCA is urging Ottawa and the provinces to go further.
“Canadian taxpayers should expect Canadian value,” says Elias. “If public money is being used to stimulate housing, whether through direct procurement, builder incentives, HST rebates, or other subsidies then those programs should include buy Canadian sourcing requirements. The Build Canada model is strong, and it should be extended across all housing-related incentive programs.”
CKCA also calls on the federal government to urgently address the growing volume of imported kitchen cabinets entering Canada at below fair market value, which has increased at approximately 20% annually over the past five years.
“This surge of under-valued imports, combined with a soft domestic housing market, is placing severe pressure on Canadian manufacturers,” Elias explains. “Addressing unfair imports is essential not only to protect Canadian jobs, but also to demonstrate to our American counterparts that Canada is serious about enforcing fair trade rules across North America.”
“Trade works best when both countries are committed to fairness,” Elias adds. “Strong domestic enforcement strengthens Canada’s position internationally and helps rebuild trust in an integrated North American manufacturing ecosystem.”
An integrated industry
The Canadian and American kitchen cabinet industries are deeply integrated, with a long history of competitive and fair trade. CKCA emphasizes that tariffs have strained these relationships and driven up prices for high-quality Canadian cabinetry in the U.S., with the ultimate burden falling on American consumers.
CKCA reports that the Canadian kitchen cabinet industry generates $4.7 billion in annual sales, employs more than 25,000 Canadians, and includes approximately 3,700 businesses nationwide, along with many peripheral suppliers in finishing, hardware, and wood products. A 2021 Statistics Canada report found that for every $1 million in output, the industry supports 10.3 jobs. Latest data shows Canadian manufacturers export approximately $610 million in kitchen cabinetry to the U.S. annually.
The CKCA, established in 1968, is a national trade association representing the kitchen cabinet industry in Canada. CKCA works to inspire progress and innovation by promoting excellence, facilitating continuous improvement, and upholding high standards in design and manufacturing.
For more information:
Sandra Wood, CKCA Executive Director
613-493-5858
