In the last few hours of 2025, Glenwood Kitchen owner James McKenna received some unexpected, but very welcome news. The kitchen cabinet manufacturer was anticipating a 50 per cent tariff to be added to his products on Jan. 1, 2026, on top of an existing 25 per cent that went into effect last October. But in the eleventh hour, President Donald Trump announced he would delay the tariff until 2027. “We were extremely surprised. Did not expect that it was happening,” McKenna said. “Greatly relieved. First thing I did was got a hold of my U.S. customers, reached out to them and inform them of Trump’s decision not to increase by 25 per cent.” Canadian-made upholstered furniture, finished wood products like kitchen cabinets and vanities, were expecting more tariffs on Jan. 1, totalling 30 to 50 per cent. McKenna said it would have “eliminated any chance of doing business with the U.S.” Right now, he says the two sides are splitting the cost of the existing 25 per cent tariff, but he’s already experienced a drop in American sales. “We’ve seen in December a drop-off in sales already, a drastic drop-off,” he said. “Probably 50 per cent of our sales in the U.S. have already gone away.” Luke Elias of the Canadian Kitchen Cabinet Association told CTV News Channel the delay is a “welcome relief” but the pain of the current 25 per cent tariff is still being felt. “It’s not a solution for us. We were hit Oct. 1 with 25 per cent and in the manufacturing environment that’s very difficult to absorb,” he said. Softwood lumber was also hit with an added 10 per cent tariff in 2025, piled onto existing 35 per cent countervailing and anti-dumping duties. During her end-of-year interview with CTV Atlantic, New Brunswick Premier Susan Holt said patience in the province is waning. “We need Ottawa to get to Washington. We need them to present a deal to the coalition. We need to start negotiating to get those tariffs off,” she told CTV Atlantic anchor Todd Battis. McKenna hasn’t had to make any restructuring changes or layoffs so far. The manufacturing business employs more than 115 people. His hope for 2026 is to maintain his American relationships and find new markets. “It’s very difficult for us to plan our business. That’s why, as a company, we’re actively looking at business outside of the U.S. to try and recoup the loss, and to grow our business. And if the U.S. business does come, that means we’re all the better,” he said. For more New Brunswick news, visit our dedicated provincial page.
