Uncertainty – The New Norm?
By Sandra Wood, Executive Director CKCA
On August 4, 2026, CKCA issued a press release applauding the federal government’s imposition of a 25% tariff on imports of kitchen cabinets and vanities. This is a provisional tariff while the Canadian International Trade Tribunal investigates the level of injury impacting the domestic cabinet industry. The announcement was an important first step, but it is surely not the only step.
Addressing unfair trading practices is a complex issue. For example, the government’s tariff announcement included “Section 2” exemptions covering a long list of countries that are not subject to the provisional tariffs. We expected exemptions, because Canada recognizes the existing trade agreements we have in place with the U.S., Mexico, Israel and Chile (I know what you’re thinking — do trade agreements have any real effect anymore given what’s happening with CUSMA?). But yes, the government has acknowledged those agreements. However, developing countries are also exempted and when you look at the list of countries, there are some that we would still consider a concern because we know they are already soliciting our industry to sell their product because they are “exempt from the safeguard tariffs”. This is another piece of the puzzle that will need further monitoring and action.
Imports into Canada have been increasing for years, and current U.S. trade pressures are exacerbating the problem. Cabinet shops focused on selling into the U.S. have been deeply affected by the U.S. tariffs, but all cabinet shops are affected by the sluggish economy and slowing housing market in Canada. The industry is in the perfect storm and uncertainty is creating a lot of pressure on companies who are trying to plan for the future. Volatility in trade is likely to persist for some time and it is challenging to keep up with the latest. For example, Section 338 under the U.S. Tariff Act of 1930 is currently in flux while we await the announcements between the U.S. and Canada on what deals were struck. Section 338 is a concern because it imposes a 50% tariff on other cabinetry entering the U.S.. This is a separate issue from Section 232 which imposes a 25% tariff on kitchen cabinetry exported to the U.S.. But the bigger concern for Canada has to be the imports that threaten the domestic market.
The Safeguard was filed in an effort to protect the industry while an investigation into the level of injury is underway. We will not know the results of that investigation until later this year and we will have to wait even longer for our government to respond. But one thing is certain, there is no finish line. Our industry has entered a new era where we must speak up and ensure our government is listening and understands that we are not against competition, we welcome it. But unfair competition with low pricing will shrink our industry. We have seen other industries disappear or reduce to a fraction of what they were. We are seeing that play out even now with companies like South Shore Furniture closing after 86 years in business.
If you are a cabinet shop or supplier in this industry, I cannot emphasize enough the importance of joining CKCA to support this industry so we can continue to represent you and fight for you. Because the world is changing and so is our industry and one thing is for certain – doing nothing will result in a very uncertain future for the Canadian cabinet industry.
Learn how to join he CKCA here.
Sandra Wood is the Secretary and Executive Director for the CKCA. She enjoys “connecting the dots” and facilitating strong networking opportunities to engage members. She believes associations are about fostering strong business relationships fueled by an empathic and sound business approach.