U.S. tariff threat: Quebec furniture company lays off 115 workers after sales drop

A Quebec furniture manufacturer says the threat of U.S. tariffs on Canadian goods has forced it to lay off 115 people in the province.

South Shore Furniture says it's laying off 97 people at its headquarters and factory in Ste-Croix, Que., southwest of Quebec City, and another 18 people at its operations in the Eastern Townships. Earlier this week U.S. President Donald Trump said he would hold off on his threatened tariffs against Canada for at least a month. But in a news release today, South Shore Furniture says the uncertainty around Trump's motives has significantly affected sales, adding that 70 per cent of its products are shipped to the United States.

South Shore says that in response to potential tariffs, major American retailers have increased their imports from Asia instead of Quebec, harming the company's business. The company says that despite the fact Trump has held off so far on imposing tariffs, it needs to lay off workers and restructure its business model.