New tariffs will mean price hikes on some upholstered furniture
Get ready for some sticker shock if you’re in the market for a new couch. Because of new tariffs on upholstered furniture made in China and Vietnam, some prices are going through the roof.
In May, heavy new tariffs were slapped on after those countries were accused of dumping their cheaper, government-subsidized leather furniture onto the Canadian market. The move is intended to protect Canadian furniture manufacturers but could end up hurting consumers.
At Moe’s Home Collection in Vancouver, co-CEO Sara Samieian and her team pivoted before the new tariffs came into effect on May 5, building relationships with manufacturers in Mexico, Malaysia and South America in an effort to secure affordable leather and fabric product.
“A lot of retailers maybe weren’t prepared, so they had shipments arriving at port and they got hit with that tariff that same day,” she says.
With the tariffs hitting nearly 300 per cent, retailers will have to pass the cost on to their customers.
“The people who are going to be most affected are the consumers,” Samieian says. “They’re going to have to be all of a sudden seeing price increases – double, triple from what they were paying a month ago.”
James Brander, a professor at UBC’s Sauder School of Business, says the change has been in the works for a long time.
“Canadian producers, they complain,” Brander said. “They say, ‘Hey look, this is unfair. These foreign imports are coming in, they’re getting subsidized, it’s not fair.’”
The new tariffs will be reviewed in August, and he says in the meantime there may be exemptions for some importers. But in the long run, everyone will have to adjust, as the tariffs are here to stay. Canadian manufacturers could be swamped with orders, and that would mean their product gets more expensive too.
“They could double their prices in the short run,” Brander says.
If you’re looking to buy a couch – the time to do it is now, before the prices jump. Moe’s still has old product from China and Vietnam on the floor but once it’s sold, they won’t restock. One of their leather sectionals that made it in before the tariffs came in is currently $14,000. If it had arrived after the tariffs were in place?
“It would probably be over $30,000,” Samieian says.
CTVNews.ca Top Stories
Lawsuit against Meta asks if Facebook users have right to control their feeds using external tools
Do social media users have the right to control what they see — or don't see — on their feeds?
BREAKING 15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
Princess Anne lays wreath at Battle of Atlantic ceremony; honours late Queen
Princess Anne saluted Canadian veterans and current forces members today during a ceremony at British Columbia's legislature cenotaph commemorating the Second World War's Battle of the Atlantic.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Nylander defends Leafs' core after playoff exit, Toronto again picks up the pieces
The Maple Leafs battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss.
Amid climate change warnings, Canadians lukewarm on electric vehicles
Amid scientists' warnings that nations need to transition away from fossil fuels to limit climate change, Canadians are still lukewarm on electric vehicles, according to a study conducted by Nanos Research for CTV News.
Three dead, two hospitalized, following collision in Fredericton: police
Three people have died and two have been hospitalized after a speeding car struck a tree and landed on another vehicle in Fredericton Sunday morning.
Montreal man on the hook for thousands of dollars after a feature on his Tesla caused an accident
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.