Quebec furniture company shutting down, citing U.S. trade war

A furniture company has become the latest casualty in the U.S-Canada trade war, laying off 126 workers and shutting down operations. ,

A Quebec furniture company has become the latest casualty in the U.S.-Canada trade war.

The company, South Shore Furniture, is laying off 126 employees and shutting down operations. The family-owned business based in Sainte-Croix, Que., first opened in 1940.

The business said in a press release that its sales have plummeted by 77 per cent over the last several months, due to the “massive dumping of imported products” and U.S. tariffs that “have caused a collapse in prices, making local production unsustainable.”

It also emphasizes that the closure is the “result of an unprecedented crisis in the Canadian furniture industry.”

The furniture manufacturer also had factories in Coaticook, in the Eastern Townships, and in Juárez, Mexico, as well as three distribution centers in the United States.

South Shore Furniture distinguished itself throughout its 86-year history by offering ready-to-assemble furniture in the 1980s and then by launching an online business in the 2000s.

Canada flooded by cheap products from Asia: industry member

Jean-François Dufresne, president and CEO of Preverco and a member of The Canadian Wood Products Alliance, said Canada is being flooded by cheap wood products made in Asia, with products from China in particular underselling Canadian products because they benefit from Chinese government subsidies.

“But in Canada, my company needs to make a profit every year to survive or else we’re out of business, we’re no longer around. In China, the whole country needs to make a profit, not necessarily in an industry or a sector. So they’ll be giving subsidies, for example, to the wood industry because it employs a lot of people often in remote areas so it’s a good thing for the country to keep these people employed. They don’t need to make a profit,” Dufresne said in an interview.

• Quebec premier meets U.S. Trade Representative Jamieson Greer in Washington D.C.

He added that several sectors of the lumber industry have seen about a 50 per cent drop in sales on a square footage basis compared to 10 years ago.

The Canadian Wood Products Alliance is calling on Ottawa to impose provisional tariffs on imported wood products.

Federal Finance Minister François-Philippe Champagne said earlier this month the government had directed the Canadian International Trade Tribunal to launch an inquiry into global imports of wood cabinets and vanities, hardwood flooring and storage furniture.

The alliance representing wood products said it appreciates the government taking action but says it won’t be enough to provide the stability and relief the industry needs unless tariffs are implemented. The alliance says there have been job losses and business closures already, and more will follow if tariffs aren’t implemented immediately.

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With files from The Canadian Press and Noovo Info