President Donald Trump has said his administration is preparing to impose tariffs on imported furniture later this year, a move that could reshape the US home goods market and impact global trade flows.
Stocks fall after tariff warning
Furniture and home goods retailers saw share prices slide in after-hours trading following Trump’s comments on his Truth Social platform. Wayfair, RH and Williams-Sonoma, all heavily reliant on imports, recorded declines.
Wayfair imports a significant portion of its products, while RH and Williams-Sonoma have been diversifying their supply chains in anticipation of potential trade barriers.
By contrast, shares of La-Z-Boy, which manufactures most of its furniture domestically, rose after the announcement, highlighting how the potential tariffs could benefit U.S.-based production.
Impact on the furniture industry
The proposed tariffs arrive at a difficult time for the U.S. furniture sector. Demand for home furnishings has been declining for more than a year, driven in part by a cooling housing market.
Higher interest rates have slowed home purchases, reducing demand for new household items such as sofas and dining sets.
Inflation has also squeezed consumer spending power, with households prioritising essentials over discretionary purchases. Analysts warn that new import tariffs could push up retail prices for furniture, further limiting consumer demand.
Broader trade policy considerations
Trump’s announcement forms part of a wider trade strategy that has already introduced tariffs on steel, aluminium and vehicles. He has also floated similar measures on copper, pharmaceuticals and semiconductors.
It is unclear whether the new furniture tariffs would be applied in addition to existing country-specific rates, raising questions for trade partners and manufacturers alike. The administration has been negotiating with both the European Union and China to address trade imbalances, but many long-term disputes remain unresolved.
While Trump has argued the tariffs will help revive furniture manufacturing in states such as North Carolina, South Carolina and Michigan, critics caution that consumers could face higher prices and limited choices in the short term.
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