Trump’s tariff threats claim another win for American workers as Canadian furniture giant Prepac announces the closure of its British Columbia plant in favor of a new North Carolina operation. The move, which brings 170+ manufacturing jobs to U.S. soil, proves that Trump was right about tariffs working.
At a glance:
- Prepac Manufacturing is shutting down its Canadian operations and moving all production to North Carolina
- More than 170 Canadian jobs will be lost while American manufacturing gains
- The company cited U.S. tariffs and proximity to American customers as key factors
- Unifor, Canada’s largest private-sector union, has called for a boycott of Prepac products
- Trump recently announced 50% tariffs on Canadian steel and aluminum with threats of more to come
Canadian Jobs Lost as Manufacturing Moves to America
Prepac Manufacturing, a ready-to-assemble furniture manufacturer founded in Canada 45 years ago, is eliminating more than 170 jobs at its Delta, British Columbia facility. The company will shift all production operations to its facility in Whitsett, North Carolina, bringing more manufacturing jobs to American soil.
This relocation comes amid President Trump’s aggressive trade policies targeting Canada, including recently announced 50% tariffs on Canadian steel and aluminum. Prepac is now the second Canadian furniture manufacturer to lay off workers due to the escalating trade tensions.
Trade War Intensifies as Trump Demands Fair Treatment
President Trump has made it clear that Canadian tariffs on American dairy and agricultural products must be reduced or face further consequences. The tariff threats appear to be working as intended, with companies like Prepac responding by moving operations to American soil rather than face the economic consequences.
Trump has threatened to increase tariffs on Canadian automobiles if other tariffs are not reduced, potentially dealing a devastating blow to Canada’s manufacturing sector. The administration’s hardline approach is designed to level the playing field for American businesses and workers who have suffered under unfair trade practices.
Company Cites Strategic Benefits of U.S. Location
Prepac CEO Nick Bozikis claimed the decision to close the Canadian plant “was the product of many months of consideration and analysis, and began long before any tariff risks to Prepac’s business arose.” The company has cited challenges for North American furniture manufacturers and the strategic advantage of having production closer to its primary customer base in the United States.
The furniture manufacturer was acquired by TorQuest, a Canadian private equity firm, in 2019 and subsequently invested $27 million in its North Carolina facility in 2021. That investment created approximately 200 American jobs, a number that will now grow with the complete transfer of operations from Canada.
Canadian union leaders have responded angrily to the announcement, with Unifor Western Regional Director Gavin McGarrigle calling it “a slap in the face to Canadian workers and Canadian consumers who have made this company a success since 1979.” The union is now calling for a nationwide boycott of Prepac products in Canada.
