Canadian case goods manufacturer on tariffs: ‘We cannot absorb all of it’

DURHAM, Ontario – Contemporary off the information of the U.S. choice to implement 25% tariffs on Canada and Mexico, the president of Durham Furnishings, a high-end Canadian case good producer, gave his take.

“I can let you know that I can not take in all of it,” mentioned Luke Simpson, president. “However I don’t know but what that appears like. I can promise we are going to do all we are able to to attenuate the impression on retailers.”

Durham has made high-end case items in Ontario for 125 years. All of its furnishings is made in Canada.

“We have to know what our authorities’s response goes to be,” he mentioned. “They could find yourself doing reciprocal tariffs, so my enter prices might go up, too. I have to know that first earlier than I can say specifics.”

Simpson didn’t need to go into a lot additional element, however he did say that his enterprise has already been affected.

“It’s created uncertainty and protectionism,” he mentioned. “It’s exhausting to say particularly how a lot impression we’ve felt, however we’ve seen orders depressed. Customers, I feel, are afraid over what would possibly occur, they usually’re pulling again from spending much more than they had been. I feel that’s going to worsen.”

Simpson additionally commented on fellow Canadian furnishings producer South Shore’s citing of tariffs as the explanation it laid off 115 employees final month.

“South Shore is extra promotional-end and I feel consumers have began trying to Asia for that stage of pricing,” Simpson commented. “We received’t be as affected as a result of we’re high-end and customized order. However like I mentioned, it already has affected our enterprise too.”

One other Canadian furnishings producer, Décor-Relaxation, told Furniture Today that the corporate would “take in all responsibility imposed on Canada for the primary six months,” in addition to work with its clients to attenuate impression to their companies.

See additionally:

• Canadian CEO reacts to Trump’s tariffs, furniture industry implications
• One home furnishings stock emerged unscathed in Trump’s tariff move