Major Furniture Manufacturer Abandons North America. What It Means for the Industry

Originally published June 30, 2025. This version was rebuilt from Dorel's business update and the May 12 executive order on China for the FIN archive, and the facts are as of that date.

At the end of June 2025 one of the larger ready-to-assemble furniture makers in North America said it was done making furniture on the continent. The decision came while importers were still working under a temporary tariff pause on China.

The short version

• Dorel said it would cease all Dorel Home manufacturing in North America.
• A May 12 order suspended the higher China tariffs for 90 days.

Dorel exits manufacturing

Dorel Industries announced it would cease all Dorel Home manufacturing operations in North America, including its plant in Cornwall, Ontario, and shrink the Home segment around a smaller product line. Dorel said the decision followed an extensive review and would eliminate losses from domestic production.

Dorel said a limited number of high-performing Dorel Home import SKUs would move to its Cosco division, which it said had delivered consistent earnings within the Home segment since 2010. The company was also working on new financing to replace its current debt structure, and its CEO said the cut was the only feasible path back to profitability.

The move showed that tariffs alone were not enough to make every domestic plant pay. Dorel would keep selling furniture, but sourced rather than made.

The China clock

Executive Order 14298 had suspended most of the higher reciprocal tariff on China for 90 days starting in mid-May, leaving a 10% rate in place. Importers were planning around a deadline in mid-August.

Update. An August 11 order extended the suspension to November 10.

What it means

Even with tariffs on imports, making furniture in North America was not a sure bet. Expect more companies to choose sourcing flexibility over factory ownership.

Related on FIN

• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.
• Follow the Tariff Dollars

Sources

• Dorel Industries, Dorel provides business update (June 30, 2025)
• The White House, Modifying reciprocal tariff rates to reflect discussions with China (May 12, 2025)
• The White House, Further modifying reciprocal tariff rates to reflect ongoing discussions with China (Aug. 11, 2025)