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The US furniture retail sector has struggled with economic problems over the past year, as retailers closed stores and closed manufacturers production facilities and companies that are sometimes provided for bankruptcy.
Furniture business deals with high costs of employment and products caused by inflation, slowing in the real estate market that suffers from depression in furniture sales, and increasing interest rates on debt, all of which led to financial hardship.
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All this was before President Trump on April 2 presented a new tariff for imports that are sure to raise the costs of furniture and prices higher.
Related: The main furniture company closes the Canada factory, moves to the United States factory
The furniture sector is preparing to increase the costs of tariffs from suppliers abroad, which reaches 54 % tariffs on imports from China and 25 % tariffs for furniture suppliers in Canada and Mexico, which enter April 9.
Trump also imposed a 10 % tariff on all other countries that start on April 5.
The definitions may have already affected the Canadian Furniture Company Prepac, as the company stopped manufacturing in Delta, British Columbia, and its flexibility and transferred all production to its factory in North Carolina, according to the company’s workers’ union.
Unifor, the union, which represents the workers of the Delta factory, blamed the Trump tariff for the closure of the factory, which will lead to the demobilization of the year 170 of the Federation worker in May after the company finished maintenance.
“Our union has been warning against loss of investment and production since Trump began his economic war against Canada and Canadian workers,” Lana Payne National President Lana Payne said in a statement on the closure. “In this case, Prepac and their shareholders use definitions as an excuse to redirect all their production to the United States. It is pure greed.”
However, Nick Bozikis, CEO of Prepac, said that the decision to close the Delta Factory and transfer production to North Carolina was a result of several months of study and analysis and began a long time before the risk of tariffs on Prepac works, Global News said.
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Graduate furniture to close business
Now, the manufacturer of furniture and huge furniture in North Carolina, which provides products to the main retailers, has revealed that it will close its work at the end of the year and lay off all its thirty employees.
Related: Huge brand files for spare parts to filter bankruptcy
The company did not indicate whether it would ask for bankruptcy. It also did not say whether the definitions played a role in its decision to close it.
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Progressive, a subsidiary of Sauder Woodworking, is a blame for closing its primary resource in Mexico, which provides 60 % of its products, for its decision to close its business. The company imports wooden furniture from Asia and Mexico.
“This decision has not been taken lightly, and we understand the impact that will happen on our employees, customers and partners,” said Dan Kindrik, president of the company. “We are committed to supporting our employees through this transition and we will help wherever possible to help them find new opportunities.”
Mexico resource closure commercial effects
Kindrik said: “It is clear that the working conditions have been difficult during the past few years, but the closure of our primary supplier in Mexico had a great impact,” Kindrik said.
Kindrik said that the company, which runs a factory for storage and distribution in Cleremont, North Carolina, will fulfill the current requests and honor guarantees until it is closed.
Progressive Furniture sells its products through Walmart, Target, Home Depot, Lowe’s, Amazon, Wayfair and other furniture retailers.
Related: The iconic American restaurant series that closes dozens of sites
