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
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Leafs star Auston Matthews finishes season with 69 goals
Auston Matthews won't be joining the NHL's 70-goal club this season.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
Customers disappointed after email listing $60K Tim Hortons prize sent in error
Several Tim Horton’s customers are feeling great disappointment after being told by the company that an email stating they won a boat worth nearly $60,000 was sent in error.