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
BREAKING Alice Munro, Nobel literature winner revered as short story master, dead at 92
Nobel laureate Alice Munro, the Canadian literary giant who became one of the world's most esteemed contemporary authors and one of history's most honoured short story writers, has died at age 92.
Latest updates on air quality alerts, and when the smoke may reach Ontario and Quebec
Wildfires have led Environment Canada to issue air quality advisories for parts of B.C., Alberta, Manitoba, Saskatchewan and the Northwest Territories, as forecasters warn the smoke could drift farther east.
Are these Canada's best restaurants? Annual top 100 list revealed
The annual list of Canada's top restaurants in the country was just released and here are the places that made the 2024 cut.
Attack on prison van in France kills 2 officers, inmate escapes
Armed assailants killed two French prison officers and seriously wounded three others in an attack on a convoy in Normandy on Tuesday and an inmate escaped, officials said.
Maximum payout for LifeLabs class-action drops from $150 estimate to $7.86
Canadian LifeLabs customers who filed an application for a class-action settlement began receiving their payments this week, though at a much lower amount than initially expected.
Steal a car, lose your driver's licence for 10 years under new Ontario proposal
Repeat car thieves may face lengthy licence bans under proposed changes to Ontario’s Highway Traffic Act.
$1.6B parts plant for Honda electric vehicle batteries coming to Niagara Region
A Japanese company has announced it will build an approximately $1.6-billion plant in Ontario's Niagara Region that will make a key electric vehicle battery component as part of Honda's supply chain in the province.
B.C. brings in law on name changes on day that child killer's new identity revealed
The BC NDP have tabled legislation aimed at stopping people who have committed certain heinous acts from changing their names.
Manitoba premier to visit areas impacted by wildfire
Manitoba Premier Wab Kinew will get a close-up look at the devastation from a large wildfire burning in northern Manitoba Tuesday.