Furniture tariffs will be imposed following a 50-day furniture industry investigation by the Trump administration, President Donald Trump announced on Friday. File Photo by John Angelillo/UPI | License Photo
The Trump administration is undertaking a 50-day investigation into the furniture market, with pending tariffs likely to revive the nation’s industry.
President Donald Trump announced the investigation in a Truth Social post on Friday and said he will impose undetermined tariffs afterward.
“This will bring the furniture business back to NorthCarolina, South Carolina, Michigan and states across the Union,” Trump said.
North Carolina ia known as the Furniture Capital of the World, which developed from access to hardwood in Appalachian forests. U.S. companies include Ashley Furniture, Century, Vanguard and Lexington Home Brands.
The pending tariffs are in keeping with those the president has imposed on other industries with the aim of returning manufacturing to the United States and reducing reliance on foreign-made goods.
The investigation is directed at furniture from “other Countries” but primarily impacts key suppliers such as China and Vietnam, which together supply about 60% of U.S. furniture imports.
Most foreign goods are already subject to tariffs from trading partners, including a baseline 10%. In a deal with Vietnam, the rate is 20% with 40% on goods going through Vietnam from a third country. In China, the rate is 10% under a 90-day pause until November from 30% after a threatened peak of 125%.
Trump’s social media post prompted a drop in shares during after-hours trading for many of the nation’s leading furniture retailers, including Wayfair, Williams-Sonoma and RH, CNBC reported.
Wayfair shares ended after-hours trading at $74.03, which was down 3.81% from its closing price of $77.84 at the end of day trading on Friday.
Williams-Sonoma dropped $6.37 and 3.13% to $197.05 during after-hours trading, while RH fell $13.51 and 5.54% to $230.20.
U.S.-based La-Z Boy, though, saw its share price rise by 76 cents and 2.08% to $37.34 after closing at $36.58 at the close of day trading on Friday.
The furniture tariffs announcement comes as the nation’s furniture industry is experiencing difficulties.
Demand for new furniture and home goods has declined as home sales slowed over the past year.
Slower home sales lessen the demand for new furniture and furnishings, and years of relatively high inflation have made consumers wary of how they spend their money, according to CNBC.
