Canadian wood manufacturers seek higher tariffs on Chinese cabinets, furniture and flooring

Manufacturers call 25% measure insufficient

Canadian wood-product manufacturers are pressing Ottawa to deepen and broaden its trade protection, arguing that a provisional 25% surtax on imported wooden kitchen cabinets and vanities will not stop discounted Asian goods from entering the market. The industry had requested a 100% surtax on processed wood products, Cabico owner Alain Ouzilleau told Le Devoir.

The federal government launched an investigation at the Canadian International Trade Tribunal in April and imposed the provisional safeguard in July. The measure excludes products from the United States, Mexico, Israel, Chile and developing countries. For now, it covers cabinets and vanities but not other wooden furniture or wood flooring.

Miralis owner Daniel Drapeau described the 25% rate as largely symbolic, although he said it could encourage customers to consider Canadian products. The Finance Department told Le Devoir that it considered the possible impact on downstream users and consumers when setting the temporary rate.

Pressure grows on both domestic and export markets

Manufacturers say Chinese suppliers redirected more products to Canada after access to the US market was restricted under the first Trump administration. Canadian producers retained access to American customers until President Donald Trump imposed 25% tariffs on certain wooden furniture, kitchen cabinets and vanities in October 2025. A further threat targets more wood products with 50% surtaxes this summer.

Cabico exports between 85% and 90% of its production to the United States. The company is absorbing half of the US tariffs normally payable by its American customers, while uncertainty has reduced its order book and already forced it to lay off about 250 workers. Ouzilleau warned that sawmills would face the next wave of damage if downstream manufacturers disappear.

The Quebec Forest Ecosystem Alliance estimates that advanced wood-product manufacturing contributes C$21 billion to Quebec’s gross domestic product and sits at the centre of an ecosystem supporting 155,000 jobs. Producers argue that weakness in furniture, cabinets and flooring therefore spreads to lumber suppliers and other linked businesses.

Furniture closures and Chinese flooring gains

Former South Shore Furniture executive Jean Laflamme said the company once employed as many as 1,200 people across Mexico, the United States and Canadian plants in Lotbinière and Estrie. It closed this spring after a sharp post-pandemic decline, while two competitors also failed. Laflamme attributed the pressure to low-priced Chinese furniture and argued that much of the saving is retained by contractors or large retailers rather than passed to consumers.

Hardwood flooring producer Preverco is operating at half its capacity, according to its head, Jean-François Dufresne. He estimates that as much as 80% of flooring installed in Canada is now Chinese-made, even though Chinese processors source hardwood from Canada or the United States.

The tribunal is due to assess by January 15 whether broader safeguard measures should also apply to hardwood flooring and engineered-wood storage furniture. Ottawa says it currently has evidence confirming that cabinets and vanities were diverted to Canada because they could not be sold in the United States. The review will determine whether protection expands across more of the wood-processing chain or remains confined to two product categories.