Prepac Manufacturing Ltd., a prominent Canadian furniture manufacturer, has announced the closure of its Delta, British Columbia, facility. The company will now shift its productions operations to North Carolina, triggering a wave of controversy and trade disputes.

The impending closure of the Delta plant, which has been operational since 2005, will result in the loss of 170 jobs. Unifor, Canada's largest private-sector union, has vehemently condemned the move and accused Prepac of exploiting trade uncertainties stemming from the Trump administration's unpredictable tariff policies. The union argues that the company's decision, citing an "altered economic environment," is a thinly veiled attempt to capitalize on the perceived instability of North American trade relations.

"Prepac used uncertainty over trade in North America to make the move amid the Trump administration’s unpredictable tariff announcements," stated the national president of Unifor in a press release. The union has vowed to launch a nationwide boycott of Prepac products, joining the growing chorus of protests against U.S.-made goods in Canada and internationally.

However, Prepac officials have refuted the union's claims, asserting that the decision to relocate was driven by long-standing economic realities. CEO Nick Bozikis, speaking to Business in Vancouver, emphasized that North Carolina's proximity to the company's customer base in a challenging North American furniture market was the primary factor behind the move. He argued that the shift reflects a strategic effort to streamline operations and enhance competitiveness in a persistently difficult market, rather than a response to recent tariff developments.

Prepac's history traces back to its founding in Vancouver in 1979. The Delta factory, established in 2005, served as a key production hub for the company. In 2019, Toronto-based private equity firm TorQuest Partners acquired Prepac, marking a significant turning point in the company's trajectory. Subsequently, in 2021, Prepac opened its North Carolina facility, laying the groundwork for the current consolidation of operations.

The closure has intensified existing trade tensions between Canada and the United States, raising questions about the long-term implications of cross-border manufacturing decisions. Unifor's call for a boycott underscores the growing sentiment of economic nationalism and the desire to protect domestic industries. The dispute also highlights the complex interplay of economic factors, trade policies, and corporate strategies in shaping the landscape of North American manufacturing.

While Prepac maintains that its decision was based on sound business principles, the union's allegations have resonated with many Canadians who view the move as a betrayal of local workers and a concession to U.S. trade policies.