Again, Donald Trump’s tariff notice jolted the furniture retailing industry on Friday, as the U.S. president also revealed tariff plans aimed at the pharma and auto sectors.
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Trump took to the social media platform Truth Social to announce preparations to impose a 50% tariff on all kitchen cabinets and bathroom vanities coming into the U.S. The administration is also planning a 30% tariff on upholstered furniture.
Both tariffs are expected to take effect on October 1. While the news shook some retailers, others managed to withstand the pressure.
As of 1:40 p.m. EDT, shares of the following furniture retailers were down:
Conversely, the following retailers managed to trade above the red line:
Trump Slams ‘Flooding’ in Furniture Industry
According to Trump, the new tariffs on the furniture industry are targeted at taming the tide of “large-scale ‘flooding'” of the country with foreign furniture products. “It is a very unfair practice, but we must protect, for national security and other reasons, our manufacturing process,” the president argued.
The new duties ride on the efforts of the current U.S. administration to bolster domestic manufacturing across several key industries, including technology and pharmaceuticals. The disclosure of the plan comes over a month after Trump had announced that his administration was conducting “a major tariff investigation” into the furniture industry.
Trump had argued that such a policy would help furniture businesses flourish in states such as North Carolina, South Carolina, and Michigan, among others. According to ResearchAndMarkets, the U.S. in 2024 accounted for about a quarter of all global furniture imports. Germany, the UK, France, and the Netherlands are also major furniture importers.
Meanwhile, industry watchers believe tariffs could eat into the profits of furniture retailers that are heavily reliant on imported items, even as they drive up the cost of goods for consumers. The measure could also cause significant supply chain disruption across the world, as the U.S.-China trade war forces suppliers to diversify their export markets.
What are the Best Furniture Retailer Stocks to Buy?
The TipRanks Stock Comparison Tool offers guidance on which stocks in the furniture retailing industry are worth investing in right now, even amid the unpredictable tariff climate. Kindly refer to the graphics below.
