Canada’s furniture and cabinet industry faces challenges

With the chapter of 2025 officially closed, the plot of tariffs remains unresolved.

“We had really no time to prepare for this,” said Peter Raja, president of Norelco Cabinets.

He has owned Kelowna’s Norelco cabinets for over 20 years, and a third of his business relies on exports to the U.S.

Since these tariffs were introduced in September 2025, Raja laid off 25 per cent of his staff before the holidays and took a portion of his business ventures outside of Canada just to stay afloat.

“We have been able to somewhat offset the amount of loss of sales due to the fact that we’re opening a shop in Hawaii, but the unfortunate part is it’s taking labour away from our local shop,” Raja told The Leader Spirit.

He warns that without the pause on the tariff increase, his business would not have been able to survive.

“We are probably going to end up having to do at least another 10 to 15 per cent of our staff laid off locally and shift that labour into the U.S.”

Norelco Cabinets is not alone. According to the Canadian Kitchen Cabinet Association (CKCA), roughly 25 per cent of industry staff across the country were laid off last year because of the tariff strain.

“The damage has already been done. But yes, it is a relief,” said CKCA vice-president Luke Elias.

He says the tariff pause is welcomed but hopes for a long-term solution.

Elias adds that other local manufacturers will have to turn inward to stay in business, but even that has its obstacles.

“We’re also competing with these low-cost imports that are coming to Canada from other countries around the world,” Elias explained.