As the Canada-U.S. trade war rages on, businesses continue to be impacted, including a long-standing local Ottawa-area business, which is closing some doors to keep others open. The New Oak Tree furniture retailer is closing two of its locations, one in Carleton Place and the other in Pembroke, to focus efforts on its two Ottawa-based locations, including its showroom in Navan. Owner Kayman McKay says he’s been doing everything he can, switching to Canadian suppliers and working to keep costs down, but tariffs and rising costs are forcing him to pivot. “The time has come to kind of consolidate and shrink down our footprint so that we can come out stronger on the other side,” McKay told CTV News Ottawa. The company has been in operation in Ottawa and the Valley for more than 20 years. New Oak Tree’s Carleton Place store is one of its original locations and carries a wide range of furniture from bedroom to dining sets. Those sets are now part of an inventory sell off, explains McKay, as the company looks to change course. A year-and-a-half ago, the company became caught up in the Canada–U.S. trade war. “The tariffs hit us really, really hard,” explains McKay. Many pieces at the time were sourced from hardwood from the U.S., one of the products upon which Canada placed retaliatory tariffs. McKay says the company was forced to absorb $100,000 in retaliatory tariff costs immediately, rather than passing it on to customers. “We actually had to pay, indirectly and directly, hundreds of thousands of dollars, including direct tariff costs,” he explains. “And when that happened it was 40 per cent of our business, and it caused, obviously, just a supply shock.” On top of that, rising diesel prices are driving up delivery costs. Kayman purchased the business in 2021, and says he’s been working hard to keep costs down, including by switching completely to Canadian supplies. Still, the immediate change was difficult for the 31-year-old. “It comes as a shock to somebody who’s a young entrepreneur to immediately kind of enter into that sort of environment. It wasn’t easy,” he says. “And it’s still impacting me today, personally and business.” Dan Kelly with the Canadian Federation of Independent Business says the situation is not unusual as the trade war drags on. “Sadly, there are thousands and thousands of businesses that are struggling under the weight of the tariffs,” he says. He says he hopes the federal government continues to step up efforts to support small businesses who face small margins to begin with. “They’re trying to, deal with it as best they can, but there’s not a lot of rope,” he explains. The Carleton Place and Pembroke stores will close Oct. 12. With all of its suppliers already shifted to Canada, McKay says he’s hopeful these latest adjustments will help the business. “Supporting small business now is, as everyone knows, it’s very important. It’s never been more important than now,” he explains.
