WMCO Moves Fast on New U.S. Tariff Challenges

New U.S. tariffs affecting Canadian products have created immediate questions for Ontario wood manufacturers over customs classifications, pricing, freight, importer responsibilities and customer costs, prompting the Wood Manufacturing Cluster of Ontario (WMCO) to organize two emergency industry forums in August.

WMCO held the first facilitated networking forum on August 24, bringing manufacturers and industry partners together to compare how the tariffs were being applied and identify areas requiring further clarification. A second forum followed on August 26 with trade lawyer Heather Jacobson, who addressed product-specific customs questions raised by participating companies.

Manufacturers reported receiving differing interpretations from customs brokers and working through tariff classifications covering cabinetry, architectural millwork, closets, furniture, wall panels and component parts.

The discussions also examined who is responsible for paying tariffs when Canadian exporters act as the U.S. importer of record. Companies described several approaches to managing higher costs, including passing tariffs directly to U.S. customers, sharing the expense or applying separate tariff surcharges.

Freight treatment was another concern. Participants discussed circumstances in which properly documented freight charges may be excluded from the entered value used to calculate duties.

Jacobson emphasized that customs treatment can depend heavily on a product’s design, intended use and installation. Permanently installed cabinetry and architectural products may be classified differently from standalone furniture, while some cupboards, shelving and bookcases attached to walls can still fall within furniture classifications.

The forum also examined bathroom vanities, cabinet parts, closets, wall and ceiling panels and knockdown products. Participants discussed whether shipping parts or unassembled products for final assembly in the United States could reduce tariff exposure in some cases, although such strategies can introduce additional operating costs and compliance risks.

Jacobson also distinguished between classification advice from brokers or consultants and formal binding rulings from U.S. Customs. Broker guidance can assist manufacturers, but companies seeking greater certainty may pursue a binding ruling.

Participants were cautioned against artificially changing invoice values or reallocating costs simply to reduce duties. The discussions instead emphasized accurate, defensible classifications supported by appropriate documentation.

The August 26 forum also covered government assistance. Moses from Belmark Advisory provided an overview of the federal Regional Tariff Response Initiative and potential support for companies facing higher costs, revenue losses or liquidity pressures. WMCO has partnered with Belmark Consulting to provide members with a funding intake form to help identify potential tariff-response and other government programs.

Information gathered through the forums is also contributing to WMCO’s advocacy efforts, including a coalition letter intended to communicate the effects of tariffs on Ontario’s wood and advanced manufacturing sector.

WMCO said it will continue monitoring tariff developments, distributing relevant customs and funding information and bringing manufacturers together as companies adjust to the changing U.S. trade environment.