U.S. Tariffs on Canadian Cabinets Set to Double

U.S. tariffs on Canadian kitchen cabinets are scheduled to double from 25% to 50% on January 1. Donald Trump originally imposed the 25% duty under Section 232 national-security tariffs to stop Asian manufacturers from routing goods through Canada to bypass U.S. duties.

The industry has already experienced a workforce reduction of over 10%, with companies such as Cabico and Muskoka Cabinet reporting significant layoffs and volume declines. Canadian manufacturers are simultaneously facing an influx of cheap Chinese imports that have captured the domestic market, leaving many companies operating at half their previous capacity.

In response, the Department of Finance Canada implemented a provisional 25% surtax on certain wood cabinet imports in July. This measure remains in place while the Canadian International Trade Tribunal conducts an investigation ending January 15. Although the United States and Canada have resumed talks ahead of U.S. midterm elections, industry leaders remain pessimistic about reaching a deal.