What New US Tariffs Mean for Home-Furnishing Industry

Trump announced that he will introduce new tariffs targeting countries that export furniture to the United States, as well as specific furniture products.
What New US Tariffs Mean for Home-Furnishing Industry
The assembly line at Wellborn Cabinet’s headquarters in Ashland, Ala. Courtesy of Wellborn Cabinet
|Updated:
0:00
News Analysis

President Donald Trump has stepped up the pressure on the global furniture industry to shift production from China and other countries to the United States, after raising concerns over a flood of imports that have resulted in the complete loss of business for some states. Some experts offered insights into the short- and long-term effects of these tariff measures.

On Sept. 29, Trump announced that he will introduce new tariffs targeting countries that export furniture to the United States, as well as specific furniture products.

“In order to make North Carolina, which has completely lost its furniture business to China, and other Countries, GREAT again, I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States,” the president wrote in a Truth Social post.
In a post on Sept. 25, Trump stated that, effective Oct. 1, the United States is imposing a 50 percent tariff on all kitchen cabinets, bathroom vanities, and associated products, as well as a 30 percent tariff on upholstered furniture. These products have been “flooding” the U.S. market, he said.

As the largest economy in the world, with a high gross domestic product per capita, the United States is among the world’s most significant markets for furniture imports.

According to import data, the United States imported 197.54 million pieces of wooden furniture, valued at $27.14 billion, in fiscal year 2023–2024.
In the first half of 2025, Vietnam was the top furniture exporter to the United States, with exports valued at nearly $5 billion, a 13 percent increase over the same period in 2024, according to Furniture Today. China followed with approximately $2.375 billion, a 27 percent year-over-year decline.

However, these numbers could be misleading, as China has been shifting its own domestic production to Vietnam.

Next on the list are Mexico, Canada, Malaysia, and Thailand, with double-digit growth in some cases, as the United States experienced a slight overall drop in household furniture imports during the period.

Wooden furniture for kitchens and bedrooms was among the top import categories, with large U.S. publicly traded companies, such as RH (formerly Restoration Hardware) and Williams-Sonoma, among the top importers.

Wall Street had a mixed reaction following the Sept. 29 announcement of new tariffs. Shares of domestic manufacturers such as La‑Z‑Boy and Ethan Allen gained, while American Woodmark and MasterBrand fell. Meanwhile, import-reliant companies such as Williams‑Sonoma and RH closed lower.

RH’s stock has been under pressure since the announcement of the first round of tariffs in April, and the company is making plans to relocate production from overseas to the United States.
The primary reason for the flood of furniture imports is the price gap between domestic and overseas production, as China sells furniture at 30 percent to 50 percent less than the United States or Europe, because of low labor costs ($3 to $5 per hour versus $20-plus in the United States), bulk material procurement, and export subsidies in China, according to the China Purchasing Agent site.

China’s export subsidies are a trade practice that Trump aims to counter with tariffs, ultimately shifting the balance between domestic and overseas production and bringing furniture manufacturing to the United States.

Already, there are some signs that this may be happening, following the introduction of tariffs in early 2025. These tariffs have narrowed the price advantages enjoyed by Asian suppliers, encouraging domestic production while preserving choice for value-oriented buyers, according to Modor Intelligence.

“A decline in imports from Asian low-cost nations signaled momentum toward local sourcing. Tariffs imposed in 2025 further reduced the cost delta, and marquee investments such as a $80 million Ashley Furniture expansion in Mississippi underline confidence in the U.S. upholstered furniture market,” Modor Intelligence stated.
However, Modor Intelligence pointed to several challenges that may slow down the move of furniture manufacturing back home, such as skilled labor shortages and capacity limitations.

Short- and Long-Term Impacts

Experts have identified several additional challenges for the furnishing industry, in both the short and long terms.

“In the short term, tariffs on cabinets and upholstered furniture will push up costs for importers so that shoppers may see higher prices on popular mid-range items and fewer deep discounts,” Georgios Koimisis, associate professor of economics and finance at Manhattan College, told The Epoch Times.

“Some stores will switch suppliers or trim product lines, which translates to limited choices and occasional delays.”

However, he expects part of the production to shift to U.S. factories over the long run.

“That could lead to more stable supply, faster repairs, and better customer service, but it takes time and investment, so prices may likely settle higher than before,” Koimisis said.

Meanwhile, he said he believes that consumers will likely give up some low-cost variety in exchange for better durability, service, and more predictable delivery, and U.S. manufacturers and workers could benefit.

Bill Currence, founder and managing partner of Cornerstone Consulting Organization, a veteran-led firm, sees tariffs translating into higher prices for homeowners and builders in the short term, as imports still make up a significant share of the market.

However, he said he believes that this disruption will ultimately lead to a stronger domestic cabinet industry in the long term.

“By adopting automation, Operational Excellence practices, and AI-enabled supply chain tools—much like leading truck manufacturers are already doing—domestic producers can scale up capacity while reducing dependency on imports,” he told The Epoch Times.

Google LogoMark Us Preferred on Google
Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”