Trump Delays Furniture Tariff Hikes by One Year
The White House postponed scheduled tariff increases on upholstered furniture and kitchen cabinets, citing ongoing trade negotiations.
President Trump gave furniture retailers a New Year's surprise: a one-year reprieve on tariff hikes.
In a proclamation signed on New Year's Eve, the White House delayed scheduled increases on upholstered furniture, kitchen cabinets, and vanities until January 1, 2027. The move keeps existing 25% tariffs in place but prevents them from doubling as planned.
The delay marks another instance of the administration walking back aggressive trade measures in the face of inflation concerns and political pressure.
What Changed
Without the delay, tariffs on kitchen cabinets and vanities were set to jump to 50% from 25% on January 1. Duties on upholstered furniture—sofas, armchairs, and related products—were scheduled to rise to 30%.
Those increases would have hit just as consumers confront already-elevated furniture prices. Living room, kitchen, and dining room furniture rose 4.6% in November year-over-year, outpacing the 2.7% increase in the overall Consumer Price Index.
The administration cited "ongoing productive negotiations regarding the imports of wood products" as justification for the pause. Translation: the talks aren't finished, and hiking tariffs now would complicate them.
Retailers Rally
Stocks tied to furniture and home goods jumped on the news.
Wayfair gained 5% in early trading. RH, the company formerly known as Restoration Hardware, rose 7%. American Woodmark and Hooker Furnishings added 1.5% and 2% respectively.
These companies source heavily from overseas manufacturers, particularly in Vietnam and China. Higher tariffs would either compress margins or force price increases that could dampen demand. The delay removes that risk—at least for another year.
A Pattern Emerges
This isn't the first tariff rollback.
In November, the administration postponed increases on imported foods including beef, coffee, and bananas. Italian pasta tariffs, originally set to take effect January 2, were pushed to March 12.
The pattern reflects political reality. Midterm elections are approaching, and voters care about grocery and furniture prices more than trade deficits. The White House appears to be choosing fights carefully.
The base tariffs remain in place. The 25% duty on furniture implemented last October still applies. But the scheduled escalations—the stick meant to force concessions from trading partners—keep getting delayed.
Affordability Concerns
The furniture tariff pause comes as household budgets remain stretched.
Even before the October tariffs, furniture prices had surged due to levies on goods from China and Vietnam, the top two sources of imported furniture. The pandemic-era boom in home goods buying has faded, leaving retailers with softer demand and less ability to pass through costs.
Hiking tariffs into this environment would have been politically costly. Consumer sentiment surveys consistently show affordability as a top concern, and furniture is a visible, big-ticket category.
The delay buys time for negotiations and avoids headlines about rising couch prices. Whether it produces actual trade concessions remains to be seen.
What's Left
Not everything got a reprieve.
Tariffs on lumber, timber, and related products remain on their scheduled trajectory. The furniture carve-out is narrow—upholstered goods, cabinets, and vanities—while construction materials continue to face import duties.
Homebuilders have been vocal about lumber tariffs driving up construction costs. So far, the administration hasn't shown the same flexibility on those products.
Trading Implications
For furniture retailers, the delay provides breathing room through 2026.
Wayfair and RH can maintain current pricing without absorbing margin hits. Manufacturers with overseas supply chains avoid scrambling to restructure sourcing.
But the tariffs aren't gone—they're postponed. Companies need to plan for the possibility that duties double in 2027. Those with domestic manufacturing capacity may accelerate investment; those dependent on imports may hedge with inventory builds late this year.
The broader message: tariff policy remains unpredictable. The administration has shown it will delay implementation when politically convenient, but the underlying posture toward imports hasn't changed.
For now, furniture stocks get a bid. Whether it lasts depends on what happens in the next round of negotiations.