Trump Investigates New Tariffs on Furniture
In August 2025, former President Donald Trump announced a formal investigation into furniture imports, signaling a potential wave of new tariffs on Chinese-made goods. This move is part of a broader strategy to revive American manufacturing, particularly in states like North Carolina, South Carolina, and Michigan. The investigation could result in new tariffs within 50 days.
The announcement immediately affected the stock market. Major retailers like Wayfair, RH, and Williams‑Sonoma saw their shares decline, as these companies heavily rely on imported goods. In contrast, domestic brands like La‑Z‑Boy and Ethan Allen, which source more products from the U.S., experienced modest gains.
Tariff Landscape: What’s Changing?
Previously, Chinese furniture imports faced tariffs ranging from 10% to 25%. With the expiration of a temporary 90-day tariff pause in August 2025, those rates have returned—and could increase further depending on the investigation’s outcome. When stacked with other duties, the total cost of some imports could reach over 30%, or even as high as 145% in extreme cases.
These changes are part of a broader strategy aimed at reducing economic dependence on China, though they also carry the risk of increased costs for American consumers.
Industry Response and Shifting Supply Chains
Retailers are already reacting by shifting production to other countries, including Vietnam, India, and Mexico. Some are also investing more in domestic supply chains, although U.S. production capacity remains limited after decades of outsourcing.
Inventory levels have increased, with companies stockpiling goods to buffer against further price hikes. Some manufacturers have raised prices by 5% or more on Chinese-made products, and many consumers are now turning to secondhand or domestically made furniture to avoid rising costs.
