Reuters investigation published November 5 into Canadian cabinetmaking jobs, U.S. tariffs and housing-renovation supply chains.
Duty could double next January
A 25% U.S. tariff on Canadian kitchen cabinets is scheduled to double to 50% on January 1, 2027, Reuters reported November 5. The increase is planned for the future; it has not taken effect today. The industry comprises many small producers that depend heavily on cross-border shipments. Executives warn that another rise could push production or jobs south of the border, although their expectations do not establish that every factory will move.
Manufacturers describe falling business
Cabico, which has production in Quebec and Ontario, told Reuters that its shipment volume to U.S. customers was down roughly 25% from 2024 and that it had eliminated more than a quarter of approximately 700 jobs. Muskoka Cabinet Company said its staffing had declined by 40% as cheaper imports and American duties squeezed demand. Those are company accounts; they should not be misreported as the exact national workforce total.
Ottawa's response is under review
Canada has imposed a temporary 25% surtax on certain imported wood cabinets and vanities, subject to a Canadian International Trade Tribunal inquiry ending in January. Industry representatives say the measure is insufficient. Tariffs could also affect suppliers serving Canadian home renovations, but it would be misleading to claim they increase every home price by the same percentage. Readers should distinguish enacted tariffs, proposed future rates and possible negotiated changes.
Sources & transparency
Reuters, Canadian cabinet makers face U.S. tariff doubling Nov 5Original CDN News coverage. Sources are linked for reference.
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