The Globe and Mail reports in its Friday edition that U.S. President Donald Trump will postpone planned tariff increases on upholstered furniture, kitchen cabinets and vanities for a year amid "productive" trade talks, the White House said in a statement Thursday.
The Globe's Sara Mojtehedzadeh writes that the announcement offers temporary relief to Canadian manufacturers in the two sectors, which were hit with a 25-per-cent levy in October after the U.S. asserted that the global imports were a threat to national security.
Further tariff increases -- a jump to 30 per cent for upholstered furniture and to 50 per cent for cabinets and vanities -- were slated for Jan. 1.
The October tariff rattled Canada's cabinet and furniture makers, who warned of a "bloodbath" in an industry already struggling to compete with cheap imports from Asia and weak domestic demand because of the sluggish housing market.
The planned tariff increases will now be delayed until Jan. 1, 2027, as the U.S. works toward trade agreements with multiple countries, the White House said.
In June, for example, Dorel Industries announced it was closing its furniture plant in Cornwall, Ont., and laying off more than 300 employees.
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