ATLANTA — With the Trump Administration dropping yet another tariff threat — this time against Canada — just a day before the start of Casual Market Atlanta, outdoor manufacturers hailing from the nation were taking a wait-and-see approach.
“There’s really nothing you can do other than just wait and see what actually happens,” said Philippe Couture, CEO, Couture Jardin, which is based in Montreal. “Knock on wood, that’s fine. In the past with China, we’ve been really affected, still at 35%. But we have a warehouse in Canada and a warehouse in the United States. We’re trying to keep it separate.”
The new proposed 50% tariff covers more than 350 product segments from Canada, including furniture, seating and furniture parts. It also impacts five different lighting segments, including chandeliers, lamps and parts.
The tariff is in response to duties imposed by Canada on motor vehicles and parts, which the U.S. government said the country does not impose on other nations.
“Specifically, Canada imposed a tariff system on only U.S. motor vehicles and treats the commerce of foreign countries more favorably than commerce of the United States with respect to motor vehicles, as defined in Canada’s United States Surtax Order,” the president’s proclamation said. … “By denying to the commerce of the United States the benefits afforded to like commerce from other countries, Canada discriminates against U.S. commerce, disadvantaging the commerce of the United States compared to the commerce of other countries.”
This new duty is being implemented under Section 338 of the Tariff Act of 1930 (19 U.S.C. 1338) which the proclamation said “empowers the President to, among other things, impose duties on imports of a foreign country to offset the burden or disadvantage from a foreign country’s discrimination against or unequal imposition on the commerce of the United States.”
On Wednesday, U.S. Trade Representative Jamieson Greer testified before the Senate Finance Committee, saying that the new tariffs won’t negatively impact trade relations between the U.S. and Canada.
“For us, this is business,” he told reporters following an appearance before the Senate Finance Committee. “This is trade. This is economics. We’re looking at bottom lines.”
The threat comes at a time when the U.S. is deep in negotiations with Canada and Mexico to update the U.S.-Mexico-Canada Agreement, a trade deal Trump signed during his first term that lowers tariffs between the North American countries.
During his Senate hearing, Greer downplayed the new tariffs, saying they only apply to “a small handful of goods,” estimating that around $20 billion of Canadian exports would fall under the new 50% duty.
Cabana Coast, which is based in Ontario, manufactures its furniture in Asia but its cushions are made in Canada. Like others in the industry, they remained hesitant to act on the tariff news, citing the president’s habit of proposing high increases and then walking them back at the last minute.
“They said that it will go into effect in 30 days, so my guess is on day 29, they’re just going to go away like last time,” said Tripp Barrett, U.S. sales manager, Cabana Coast. “We’ll see.”
