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PSA Furniture Import Tariffs Rises up to 295% (from China & Vietnam)

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  • Sep 10th, 2021 11:24 pm
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Apr 10, 2011
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PSA Furniture Import Tariffs Rises up to 295% (from China & Vietnam)

Inflation is rocketing through the economy in multiple ways, but here's yet another reason your higher COVID income and savings isn't going to get you as far in the future:

"Thinking of buying a new couch? The price may have just quadrupled"
Furniture industry thrown into chaos as tariffs cause retail prices to spike
https://www.cbc.ca/news/business/furnit ... -1.6043863
On May 5, the federal government imposed tariffs of up to 295 per cent on imported upholstered furniture from Vietnam and China.

He recalls a customer who came into one of his stores recently and tested out a recliner that was priced at $698. "If they come to my store today, it's going to be $2,598," he said. "It's not affordable."

Ottawa imposed tariffs after a half dozen Canadian furniture producers complained that products from Vietnam and China were being dumped into Canada at prices that were wildly uncompetitive.

According to Palliser, the flood of cheap products, primarily from China, is hurting Canadian companies. "There has been a significant loss of jobs across Canada as a result of the unfair competition from China in particular," one of the company's submissions to the Canada Border Services Agency says.

Exporting items at prices below what they would sell for domestically is known as dumping, and it's a contentious issue in international trade law.

Unpopular though they may be with consumers, tariffs are one of the bluntest instruments available to governments seeking to level the playing field.

Complaints about unfairly priced Chinese and Vietnamese-made products have been a long simmering issue in the furniture business, so while Dodd says he had an inkling something was coming, he was expecting tariffs in the range of 10 to 20 per cent, similar to what the U.S. recently implemented.

But at four times the sticker price for some products, sales have slowed to a crawl as customers balk at exorbitant hikes, he said. While about half his upholstered merchandise is locally sourced, the other half has been waylaid by the tariffs.

"I've cancelled almost 35 containers of product coming until the end of the year," he said. "That's $1 million of sales."
It's probably much too late to rush into smaller stores as they've likely already increased their prices on Made-in-China furniture. However, very large distributors (like Costco and Walmart) likely price goods at the cost that they were purchased at previously (rather than future replacement cost prices).

So, if you are price-sensitive and looking for a new furniture item, you might want to rush into Costco or Ikea and buy it now! I can't imagine how this will impact the furniture department of Ikea. Instead of replacing existing upholstered furniture inventories from China, they may just have them made in other countries now.

The vast government trillion-dollar (COVID) financial policies and multi-year 0.25% manipulated interest rate policy, we can definitely count on significantly increased prices and many more country trade disputes. It's going to get very interesting.
Last edited by RxMills on May 31st, 2021 1:44 pm, edited 3 times in total.
48 replies
Deal Addict
User avatar
May 8, 2004
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Maybe this will encourage companies like Urban Barn to return to Canadian manufacturing and stop importing inferior couches from China.
Jr. Member
Apr 20, 2020
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Homer88 wrote: Maybe this will encourage companies like Urban Barn to return to Canadian manufacturing and stop importing inferior couches from China.
Sure, and prices will be adjusted accordingly.
Deal Fanatic
Aug 29, 2011
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Mississauga
So... does it actually cost 300% more to manufacture a chair in Canada than in Vietnam?
Deal Addict
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Sep 19, 2002
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Every Canadian can afford a $3,000 couch, so it's not a problem, right?

Some of these policies are just stupid. Canada will never be competitive in manufacturing given our market size is 1/40 that of the largest economy in the world.

The past few years have already shown, most companies won't change their entire supply chain just to avoid tariffs. It's the consumers that end up paying the bill.
Deal Guru
Dec 5, 2006
10702 posts
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Markham
Spinner wrote: Every Canadian can afford a $3,000 couch, so it's not a problem, right?

Some of these policies are just stupid. Canada will never be competitive in manufacturing given our market size is 1/40 that of the largest economy in the world.

The past few years have already shown, most companies won't change their entire supply chain just to avoid tariffs. It's the consumers that end up paying the bill.
The problem is do those tariffs encourage domestic manufacturers improve their efficiency or just getting lazier
Sr. Member
Dec 15, 2017
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Homer88 wrote: Maybe this will encourage companies like Urban Barn to return to Canadian manufacturing and stop importing inferior couches from China.
some of the worst quality furniture is made in Canada.
Deal Fanatic
Jul 4, 2004
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All of you had raised some really great points but with our cost of labor, taxes, and regulations, we will never be able to compete effectively with the foreign manufacturers.

And the government's idea of punishing consumers for not being able to afford Canadian made furniture with unreasonable tariffs, is pretty stupid because it still hurts Canadian businesses that depend on sales too - like in the example of above.

I still can't get over how people and businesses had complained about Amazon not charging sales tax and wanting them to do so, which the Liberals [...] were too happy to oblige, rather than calling on the government to lower taxes and regulations to try and level out the playing field instead. So coming this summer everything at Amazon (other than tax exempt items) will be fully taxed whether they have a Canadian presence or not. Consumers lose again and there are those consumers who actually championed this too - race to the bottom.
Last edited by Mars2012 on Jun 2nd, 2021 9:27 am, edited 1 time in total.
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Deal Fanatic
Jun 20, 2020
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Aired tonight on CBC's The National


Furniture shoppers in Canada could see the price of some items quadruple because of new tariffs slapped on imported items from China and Vietnam. A panel found the imports were undercutting furniture made in Canada.
Deal Addict
Jan 12, 2017
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Langley
so Canadian manufactures think $6k for a made in China leather sofa is fair price?

I started shopping for new sofa and noticed Ikea is almost completely out of stock on every model and been like that for months... not sure if this has anything to do with it...
Jr. Member
Mar 22, 2013
121 posts
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BC
Why is a $1000 couch now selling for $3000?

It didn't cost the importer $1000 for that couch.... it cost a lot less, and Chinese and Vietnam manufacturers were dumping their products into Canadian markets for dirt cheap.

Hence the tarrifs.

Normally I'm all for being cheap and getting the best deal, but this sounds like some bullshit knee jerk reporting with questionable commentary from the furniture companies trying to stir up consumers.

https://www.cbsa-asfc.gc.ca/sima-lmsi/i ... p-eng.html

https://www.cbsa-asfc.gc.ca/sima-lmsi/i ... d-eng.html
Deal Fanatic
Aug 29, 2011
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Dreamrider wrote: I started shopping for new sofa and noticed Ikea is almost completely out of stock on every model and been like that for months... not sure if this has anything to do with it...
Supply of large, durable goods has been hit or miss during the pandemic so it seems unrelated.
Deal Expert
May 30, 2005
46092 posts
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Richmond Hill
There are tons of good pricing on made in Canada furniture. The increase seems a bit much but I do support increasing tariffs because there are too many low quality furniture that just gets used for a few years and dumped into the trash - it was cheap, and replacements are cheap, so why make them good quality?

I'd much rather see the economy resell/reuse old artisan furniture and keep the marginal costs of ownership low that way. Instead of spending the same money on buying a cheap, new furniture, just buy a gently used piece instead. The environment will thank you.
Deal Addict
Jul 6, 2008
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I bought a couch from EQ3 and it was Canadian made, cheaper than the West Elm couch I wanted that was made in China...
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Nov 30, 2005
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Bought an expensive Canadian made couch 4 years ago. Quality was crap for the price premium we paid. Made in Canada is not what it used to be.
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Dec 26, 2014
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randyzive wrote: Why is a $1000 couch now selling for $3000?

It didn't cost the importer $1000 for that couch.... it cost a lot less, and Chinese and Vietnam manufacturers were dumping their products into Canadian markets for dirt cheap.

Hence the tarrifs.

Normally I'm all for being cheap and getting the best deal, but this sounds like some bullshit knee jerk reporting with questionable commentary from the furniture companies trying to stir up consumers.

https://www.cbsa-asfc.gc.ca/sima-lmsi/i ... p-eng.html

https://www.cbsa-asfc.gc.ca/sima-lmsi/i ... d-eng.html
Yeah there's a bunch of nonsense going on here.

If something cost $200 to import before and it now costs nearly $800 with the 295% tariff...if you were selling it for $400 why does it need to now sell for $1600? Because you HAVE to make 100% margin on it? LOL. If you sell it for $1000 you're still making the exact same amount of profit.
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Dec 18, 2002
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You can build crap quality products in Canada and you can also build good quality products in China.
Most people don't want to pay for quality, they want cheap stuff. Manufacturers build what people are willing to buy.
Sr. Member
Dec 15, 2017
511 posts
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cil254 wrote: You can build crap quality products in Canada and you can also build good quality products in China.
Most people don't want to pay for quality, they want cheap stuff. Manufacturers build what people are willing to buy.
the problem is how do you tell the difference between a quality piece of furniture like a couch vs something cheaply made but marked up high? One big thing I'd look for is durability but you can't gauge that sitting at the showroom.
Deal Expert
Feb 7, 2017
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miningminer wrote: the problem is how do you tell the difference between a quality piece of furniture like a couch vs something cheaply made but marked up high? One big thing I'd look for is durability but you can't gauge that sitting at the showroom.
True

But still easier to gauge in person vs online

With sofas & chairs it’s all about construction ... you gotta ask questions and inspect the product

SEAMS ... vastly important first glance
Then consider fabrics themselves
Ask about framing
Hardwood better than softwoods
Screws better than nails
And stuffing ...

Cuz when it comes to sofas & chairs
The wearing out happens because things give out / wear out
Seams rip open
Fabric tears or wears badly
Frame breaks
Stuffing collapses ... or moves / wanders

A good chair or sofa can last 10+ years
Some even decades
A crappy one ... just a few years

Better to buy a solid colour in quality
Than a trendsetter with poor quality
Ones money will go further in the long run

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