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Muskoka chair maker's tariff woes highlight challenges for mom-and-pop manufacturers
The family-run company says the tariff bill will reach about $75,000 in eight weeks, forcing a choice between higher prices or shifting production south.
On Thursday, DFC Woodworks, based in Kemptville, Ontario, announced it is considering moving production to the United States to avoid a steep 50% tariff on its furniture exports.
Since 1955, the company has relied on the United States for about 70% of its sales, making the tariff burden a significant operational challenge.
President François Bruneau said the tariffs will cost DFC Woodworks about $75,000 over the next eight weeks, stating, "If we raise prices, it will make us non-competitive and sales will go down."
Moving U.S.-bound manufacturing to North Carolina would require sourcing wood from Oregon and Washington, Vice-president Dina Elatawi said, potentially triggering layoffs at the Kemptville site.
Small operations like DFC Woodworks lack the diversified markets and financial resources that allow larger corporations to weather trade wars, says Fen Hampson, an international affairs professor at Carleton University.