A furniture manufacturer in Canada has announced it will shut down operations, citing mounting trade pressures and collapsing demand linked to global market shifts.
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The Quebec-based manufacturer, South Shore Furniture, founded 86 years ago and known for ready-to-assemble furniture, said it could no longer compete amid a surge of low-cost imports from Asia and the impact of US trade policies. Sales dropped 77% between 2022 and 2025, forcing the company to wind down its plants in Sainte-Croix and Coaticook over the coming weeks.
According to the company, US tariffs have disrupted traditional trade flows, diverting Asian exports into Canada and intensifying price competition. At the same time, Canadian products have become less competitive in the US market, further eroding demand.
Industry body Quebec Furniture Manufacturers Association noted that increasing shipments of low-cost furniture from countries such as China and Vietnam are undercutting domestic producers, in some cases at prices below their home markets.
The closure affects 126 employees and deals a blow to Sainte-Croix, Quebec, where the company is a major employer.
The decision follows similar moves by Dorel Industries and Prepac Manufacturing, both of which exited domestic production last year.
The Canadian government has since launched a trade inquiry into imported wood products, while industry groups are calling for immediate protective tariffs to stabilise the sector.
The shutdown underscores growing vulnerability across North America's furniture supply chain, where geopolitical tensions, tariff regimes and aggressive global pricing continue to reshape competitiveness and threaten local manufacturing ecosystems.
Source: www.theglobeandmail.com
