President Donald Trump in recent days threatened to slapped tariffs on furniture, which would extend the president’s encumbrances to an industry largely composed of low -cost imports.
The measure would probably raise furniture prices as importers pass through a part of the tax burden on consumers, analysts told ABC News, but some suppliers can relieve prices pressure when swallowing costs in an effort to continue being competitive in the United States solid market.
The details of the proposed policy are still unknown, analysts said, which hinders the forecast of the scope of price increases.
“If the tariffs enter their place, it is almost certain that furniture prices will increase, to provide that new house or improve the sofa that the dog destroyed or whatever it is,” Tyler Schipper, professor of economics at the University of St. Thomas, told ABC News.
In a publication on social networks on Friday, Trump said the White House had opened an investigation into imported furniture, saying that the products would be “Tarife at a rate yet to be determined.” The investigation will be completed within 50 days, Trump said.
“This will bring the furniture business back to North Carolina, South Carolina, Michigan and in the states of the entire union,” Trump added.
The United States imported $ 25.5 billion in furniture in 2024, 7% more than the previous year, according to Outlet Comercio Furniture today. Vietnam and China represented approximately 60% of imports, according to the report.
In recent months, Trump has placed specific tariffs in the country in the best furniture exporters. Vietnam products face a 20%rate, for example, while Chinese imports find a 30%tax.
Furniture prices have already begun to rise in response to the country’s specific tariffs, said Jason Miller, a professor of supply chain management at Michigan State University, ABC News.
Furniture prices shot 1.4% for three months that end in June, compared to the previous three months, according to the government’s personal consumption expenditure index.
“This is a great jump,” said Miller, noting that the index had declined largely between the mid -1990s and mid -2010.
Furniture prices shot during the COVID-19 pandemic, since the orders of staying at home caused a demand wave while the supply delivery bottlenecks in triumph. A recovery of the supply chain helped reduce prices in recent years, until the tariffs sent them to increase again, Miller said.
“It is difficult to see many positive aspects from the point of view of the consumer at this time,” Miller added.
A round of furniture rates would exacerbate price increases, since importers will probably transmit part of the cost for consumers, analysts said. Tariffs will also increase the cost of furniture pieces, they added, hiking expenses for national manufacturers and will probably cause higher prices even for products made by the United States.
“If you put a great rate on imported goods, it has the effect of reducing competition in the United States,” Schipper said. “If American manufacturers have less competition, they can also increase their prices.”
IKEA is a Swedish multinational group that designs and sells furniture, kitchen and accessories ready to assemble.
New Year Densoles / Adobe Stock
In a publication on social networks last week, Trump promoted what he sees as an absence of inflation induced by the rate.
“Tariffs have not caused inflation, or any other problem for the United States, that are not large amounts of cash that reach the coffers of our treasure. In addition, it has been shown that, for the most part, consumers do not even pay these rates, they are mainly companies and governments, many of them foreigners, collecting the tabs,” Trump said.
Until now, price increases induced by the rate have proven to be marginal. The general inflation rate is 2.7%, below the rate of 3% in January, before Trump assumed the position.
Undoubtedly, analysts said that the precise impact of possible furniture rates still is not clear since many details of the policy have not yet been determined, including the rate of rates.
Some analysts also predicted that furniture suppliers would swallow some of the costs related to the rate in an effort to preserve attractive prices in the consumer market of the United States, the largest destination for furniture products.
“Foreign producers could have to find ways to reduce prices to maintain the competitive price in US markets,” said Michael Sposi, economy professor at the Southern Methodist University, ABC News.
Even so, said Sposi, buyers will probably face higher furniture prices in the coming months.
“The question will be the magnitude of price increases,” Sposi added. “At this stage, there is not much clarity about how it will look.”
