Canadian furniture retailers are expressing concern over a potential increase in import tariffs on upholstered furniture, such as sofas and chairs, from countries like China and Vietnam. This development follows a complaint by the Canadian Home Furnishings Alliance (CHFA) to the Canadian Border Services Agency (CBSA), seeking an investigation into the pricing of these imports.
The CHFA has noted a significant market shift in the Canadian Fabric Stationary Domestic Seating (FSDS) sector. According to their data, from 2019 to 2022, the market for FSDS in Canada grew by approximately 39 percent, with China and Vietnam surpassing Canadian production as the primary sources. This growth in imports has coincided with an 11 percent decrease in the market share of Canadian producers.
The CHFA is requesting the CBSA to examine whether imports from these countries are being priced in a way that undercuts Canadian manufacturers. This practice, known as dumping, is defined under the Special Import Measures Act (SIMA) as exporting a product at a price lower than its domestic market value. One of the CBSA’s responses to dumping is the imposition of higher tariffs.
This request comes two years after the Canadian government introduced tariffs of up to 295 percent on leather upholstery and recliners from China and Vietnam. Local retailers, however, warn that additional tariffs could have significant repercussions for their businesses and consumer prices.
Sara Samieian, owner of Moe’s Home Collection in Vancouver, which imports most of its furniture from China and Vietnam, expressed concerns that new tariffs could restrict import options, leading to reduced selection and potentially higher retail prices in Canada. Samieian anticipates that Canadians could see store prices increase by 25 to 50 percent, as retailers may have to source from other markets, such as Mexico or Eastern Europe.
DIG360 retail adviser Rick Bohonis, however, advises caution in reacting to these potential tariff increases. He notes that Canada’s economic situation has changed since the last tariffs were applied, and inflationary pressures might influence the government’s decision. Bohonis suggests that any tariff impacts on consumer prices might not be immediate, taking six months to a year to materialize.
The CBSA has not publicly acknowledged the receipt of the CHFA’s complaint, nor has it announced an investigation into the matter. However, it has confirmed that upholstered domestic seating from China is already subject to a CBSA measure implemented following a 2020 investigation. If the CBSA initiates a new investigation, preliminary decisions, including provisional duties, would be made within 90 days.
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