U.S. tariffs devastate Canadian cabinet industry despite January pause

The Canadian Kitchen Cabinet Association warns that despite President Donald Trump's January 1, 2026 pause on planned tariff increases (from 25% to 50% on cabinets), the existing 25% tariffs imposed in October 2025 are devastating Canada's $4.7-billion cabinet industry. Association VP Luke Elias reports multiple manufacturers have warned of layoffs since October, with Manitoba-based Elias Woodwork (400 employees, 80% U.S. exports) seeing all profits eliminated. The sector employs 25,000 Canadians across 3,500 companies and exports $600 million annually. The association urges Canada to strengthen rules-of-origin in the CUSMA trade agreement review and address Chinese parts imported through Canada to circumvent U.S. duties. Ottawa's Build Canada procurement policies provide some relief but need extension to provincial incentives.