President Donald Trump announced Friday that his administration is launching a 50-day investigation into furniture imports. The move signals that tariffs on imported furniture are likely to follow. “This will bring the furniture business back to North Carolina, South Carolina, Michigan, and states across the Union,” Trump stated on his Truth Social platform.
North Carolina, known as the Furniture Capital of the World, developed its industry due to access to hardwood in Appalachian forests. The pending tariffs align with previous measures taken by the president aimed at boosting U.S. manufacturing and reducing reliance on foreign-made goods. The investigation primarily targets furniture from key suppliers such as China and Vietnam, which together account for about 60% of U.S. furniture imports.
Most foreign furniture goods are already subject to tariffs, including a baseline 10%.
Tariffs could reshape furniture industry
Imports from China currently face a 10% tariff under a 90-day pause, set to increase to 30% after November, with a previously threatened peak at 125%.
Trump’s announcement prompted a drop in shares during after-hours trading for many leading furniture retailers. Wayfair shares closed at $74.03, down 3.81%, while Williams-Sonoma dropped 3.13% to $197.05, and RH fell 5.54% to $230.20. Conversely, U.S.-based La-Z Boy saw its share price rise by 2.08% to $37.34.
The announcement comes as the nation’s furniture industry faces challenges due to slower home sales over the past year. Reduced home sales lessen the demand for new furniture, and persistent high inflation has made consumers more cautious with their spending. It remains unclear whether the new tariffs on furniture will be applied in addition to existing country-specific tariff rates.
The potential measures have drawn opposition from industry insiders who argue that such tariffs could adversely affect the market.
