The US furniture industry is facing mounting uncertainty after President Trump announced the possibility of additional tariffs on imported goods. The announcement sent shares of major brands such as Wayfair, RH, and Williams-Sonoma tumbling, highlighting the risks for a sector still heavily dependent on imports and now bracing for higher consumer prices.

Wayfair stressed that its inventory-light business model gives it flexibility in dealing with tariff shocks. The company relies on more than 20,000 suppliers worldwide competing to keep costs low. Even so, Wayfair’s stock plunged nearly 6 percent after the tariff announcement.

Restoration Hardware, led by CEO Gary Friedman, has already taken major steps to reduce its reliance on China. At the start of 2025, about 16 percent of its goods still came from China, but that figure is expected to fall to just 2 percent by year-end. Friedman added that more than half of RH’s upholstered furniture will be produced in the US, primarily in North Carolina, while 21 percent will come from Italy.

Williams-Sonoma, the parent company of Pottery Barn and West Elm, also saw its shares decline but has not released a detailed mitigation plan.

Since the first round of tariffs under Trump’s earlier term, the industry has worked to diversify its supply chain. Production has steadily shifted from China to Southeast Asian countries such as Vietnam, Indonesia, Malaysia, and Cambodia. Data shows that US furniture imports from those countries surged to $15.4 billion in 2020, up sharply from $4.6 billion in 2014. By contrast, imports from China declined significantly.

At the same time, many large companies have brought more production back to the US. Manufacturing hubs in North Carolina, South Carolina, and Michigan are regaining prominence, aligning with government efforts to restore domestic industry capacity.

Furniture is a high-value purchase that buyers often delay. With tariffs raising prices, consumers may postpone or cancel furniture purchases altogether. Retail analysts warn that this could stall the recovery of the home goods sector.

Smaller retailers with less supply chain flexibility than giants like Wayfair or RH are already feeling the pressure. Price hikes triggered by tariffs have weakened consumer spending power and dampened sales.

Not every company is losing from the tariff wave. US-based manufacturers such as La-Z-Boy and Ethan Allen saw their shares edge upward, as their domestic production shields them from higher import costs. Bassett Furniture even raised wholesale prices by up to 5 percent in July to offset tariffs on raw materials imported from Vietnam and India, including fabrics, plywood, and other finished goods.

This trend shows that tariffs, while punishing for import-heavy companies, can create opportunities for firms with stronger domestic manufacturing bases. The downside, however, is that consumers will inevitably face higher prices across the board.

New tariffs represent both a political and economic strategy. Trump’s goal is to reduce reliance on China and restore US manufacturing capacity. Yet in the short term, the policy adds inflationary pressure to furniture prices, hitting American households directly.

If the tariffs are expanded, consumers will become more cautious and selective in their purchases. Furniture companies will be forced to adjust strategies not only by securing alternative supply sources but also by rethinking pricing and value propositions to remain competitive.

This tariff dispute marks a turning point for America’s furniture industry. Big brands must quickly restructure their supply chains, while domestic manufacturers see a chance to expand. But ultimately, consumers will carry the burden through higher costs.

Read more about global economic shifts at Olam News and explore our coverage on how trade wars continue to reshape other industries.

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