Furniture Industry: How Small Business Owners in Canada Can Increase Production Amid U.S. Tariffs – Day 4

Published on April 22, 2025

By Manmeet Kaur, Endefine – Best Digital Marketing Agency in Canada 2025

Over the past few days, we’ve explored strategies for Canadian small businesses to navigate U.S. tariffs in various industries. Today, on Day 4, we’re focusing on the furniture sector—specifically office chairs, mattresses, sofas, and kitchen cabinetry. The 25% U.S. tariffs, effective since March 2025, combined with Canada’s retaliatory 25% tariffs on $29.8 billion of U.S. goods, are driving up costs for imported materials like lumber and upholstery fabrics, while making U.S. exports less viable. For example, tariffs on lumber—a key material for furniture—are projected to raise U.S. home construction costs by $7,500 to $10,000, a cost often passed to consumers, impacting demand. At Endefine, we believe these challenges can be turned into opportunities. Here are six new strategies to help Canadian furniture producers increase production amid U.S. tariffs.

The Tariff Challenge for Furniture Producers

America's tariffs have agitated the furniture industry by making inputs like lumber and fabrics for imports, required to make office chairs, mattresses, sofas, and kitchen cabinets, more expensive. Canada's counter-tariffs on imported U.S. goods, like appliances and furniture, further tangles supply chains. To that effect, recent Chinese and Vietnamese import furniture tariffs (as much as 295% in 2021) are a continuation of the dumping trend that still has Canadian manufacturers gunning for price competition. Thankfully, with Canadian retailers like Ashley Canada emphasizing domestic production and growing "Buy Canadian" consciousness, there is room for growth. Let's see six ways to enable you to grow your production.

1. Highlight Modular and Customizable Designs

Consumers are increasingly seeking furniture that fits their own spaces and needs, such as modular office chairs or custom kitchen cabinets, especially as tariffs raise the price of mass-produced imports.

What to Do?

• Develop modular furniture lines, such as sectionals or adjustable office chairs, where consumers can recombine and reconfigure pieces.

• Offer customization choices on your site, i.e., material choices for mattresses or finishes for cabinetry, via an interactive design tool.

• Promote these services with focused Instagram advertising, using keywords like "custom Canadian furniture" to attract buyers seeking customized solutions.

Why It Works?

• Value-added furniture commands higher margins, offsetting tariff costs, and meets customer demand for unique, locally-made products, allowing for more production.

2. Partner with Canadian Upholstery Fabric Suppliers

Foreign fabric tariffs from the U.S. and Asia are increasing costs of upholstered furniture like mattresses and sofas. Purchasing locally reduces expenses and appeals to patriotic buyers.

What to Do?

• Source upholstery material from Canadian textile companies, such as those in Quebec's fabric hub, to avoid tariff-induced price hikes.

• Highlight your utilization of Canadian materials in promotional campaigns, for example, with a tagline of "100% Canadian Comfort" for beds and couches.

• Utilize LinkedIn to build local suppliers, forming long-term connections that ensure constant material supply.

Why it Works?

• Local purchasing is cost-effective and aligns with consumer preference for Canadian products, which increases demand and assists in increased levels of production.

3. Use Government Relief Programs to Modernize Equipment

The Canadian government is offering relief programs, such as delayed payment of corporate taxes and GST/HST remittances up to June 30, 2025, releasing up to $40 billion of liquidity into businesses.

What to Do?

• Take advantage of delayed tax payments to invest in automated manufacturing equipment for office chairs or cabinetry, optimizing the productivity of output.

• Obtain funding from Canada's regional development agencies to finance equipment modernization, as outlined in recent government announcements.

• Train staff on new equipment to ensure seamless transition, minimizing downtime.

Why it Works?

• Government support provides the capital needed to boost production through automation, allowing you to service higher demand without increasing labor costs.

4. Create a Subscription Model for Office Chairs and Mattresses

A subscription model can provide steady revenue to finance production, especially for items like office chairs and mattresses that lose quality over time.

What to Do?

• Launch a subscription service where businesses can lease office chairs for remote workers, with the option of refreshing every two years.

• Offer a subscription mattress to customers with a fresh mattress every 5-7 years shipped for free and the previous one recycled.

• Market this model via email marketing, targeting small businesses and eco-conscious consumers with messaging like "Sustainable Comfort, Delivered."

Why it Works?

• Subscriptions offer steady cash flow, enabling you to scale manufacturing while building a customer base with convenience and sustainability loyalty.

5. Host Virtual Showrooms to Attract Foreign Buyers

Though U.S. exports are less attractive, the EU and Asia are opportunities for growth in Canadian furniture, especially as foreign buyers seek beyond tariff-heavy U.S. and Chinese options.

What to Do?

• Host a virtual showroom on your website, with 3D images of sofas, office chairs, and kitchen cabinets available to foreign buyers.

• Utilize multilingual SEO (i.e., French, German) to promote to EU markets with keywords like "tariff-free Canadian office chairs."

• Leverage Export Development Canada (EDC) resources to locate and enter new markets with the convenience of exporting.

Why it Works?

• Virtual showrooms reduce the expense of marketing internationally so that you can win new clients and ramp up production to supply the globe.

6. Partner With Interior Designers for B2B Orders

Interior designers working on commercial jobs (e.g., offices, hotels) need bulk furniture like office chairs and cabinetry, offering a steady stream of orders to propel manufacturing.

What to Do?

• Partner with Canadian interior designers to supply furniture for office renovations or hotel construction on a discount in bulk basis.

• Host a webinar with designers, showcasing the quality and customizability of your furniture, and share it on LinkedIn to reach more individuals.

• Create a portfolio section on your website showcasing past B2B projects, keyword-rich words like "Canadian furniture for commercial buildings."

Why it Works?

• B2B orders generate large, recurring orders, enabling you to produce in bulk while building your brand in the commercial design community.

Partner with Endefine to Expand Your Business

We at Endefine believe in helping Canadian businesses. The top-rated digital marketing agency in Canada for 2025, we provide virtual showroom building, SEO, and B2B marketing solutions to expand your furniture business. Let's tariff-proof your manufacturing together.

Ready to increase your furniture manufacturing?

📩 DM us [Here] to start your strategy today.

📖Learn more about us. [Here].

The Bottom Line

US tariffs can challenge the Canadian furniture industry, but they also offer opportunities to innovate. You can increase production and thrive by focusing on modular designs, local sourcing, government support, subscriptions, virtual showrooms, and B2B partnerships. Turn your furniture business into a success story—speak with Endefine today!