As global trade tensions continue to reshape industries, Mike Baker, President of Pearl Mantels, renowned makers of fine mantels, shares his firsthand experience navigating the challenges brought on by the latest U.S. import tariffs.
A regular participant at the High Point Market, Mike voiced his growing concerns, following the implementation of tariffs under the Trump administration.
Pearl Mantel President, Mike Baker.
Timing was everything, and it was bad
For Mike, the announcement of new tariffs couldn't have come at a worse time. 'The timing was bad,' he remarked. 'It made us less competitive, and realistically, we couldn't afford to absorb these tariffs.'
The most immediate effect was financial. 'There was no way to absorb the additional costs, a product price increase was inevitable,' Mike explained. 'While logistics were largely unaffected, the company took swift action on the planning front, moving its next production run up by two months to manufacture and ship during the 90-day of 10% tariff.'
High exposure to Vietnam exports
Mike revealed that approximately 90% of his products are exported from Vietnam, leaving the business highly sensitive to U.S. trade policy shifts. Although customers have not yet felt the full impact, a price increase is scheduled for June 1, 2025.
Despite the challenges, Mike confirmed that relocating production to other countries is not currently under consideration. Pearl Mantels is instead focusing on weathering the storm with its existing supply chain. In an increasingly tough market, survival often comes at a price.
'We've had to discount products to stay competitive,' Mike admitted, noting that this strategy has directly reduced profit margins.
Looking ahead, Mike predicts a major consolidation across the global furniture industry.
'We'll see a shakeout, smaller providers will struggle or disappear, and the big suppliers will only get bigger. There will be less competition overall,' he warned.
More information:
Pearl Mantels
Mike Baker
[email protected]
www.pearlmantels.com