President Donald Trump has announced new trade agreements with two of Asia's major furniture-producing nations, Indonesia and Vietnam. The deals, which come after months of uncertainty, aim to recalibrate the United States' trade posture in Asia while offering greater clarity to American importers and distributors.
These agreements are part of Trump's broader trade strategy, which has already yielded preliminary deals with the United Kingdom and China. While the details of the China agreement have yet to be disclosed, the deal has reportedly been finalized and signed.
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Indonesia: tariffs lowered
Under the new agreement with Indonesia, a 19% import tariff will be applied to Indonesian goods entering the U.S.—a significant reduction from the 32% Trump had previously threatened. In return, Indonesia has agreed to lift import duties on American industrial and agricultural exports.
The impact on local furniture markets is expected to be substantial. In 2024, the U.S. imported approximately $1.64 billion worth of furniture and related products from Indonesia. Products falling under HS-code 940360—including wooden cabinets, tables, and chairs—accounted for $375.6 million of that total. Indonesia is particularly competitive in niche markets such as rattan and bamboo furniture, holding roughly a 12% share of U.S. wooden furniture imports.
While the 19% tariff still represents an increase in costs for U.S. importers, it is less severe than initially feared. Anticipating higher duties, the market had already responded with a 5% decline in import volume from Indonesia over the past six months.
Vietnam: two-tier tariff structure
Vietnam, the United States' largest supplier of furniture by far, has agreed to a dual-rate tariff system. A general 20% tariff will apply to Vietnamese-made furniture exported directly to the U.S., while goods routed through Vietnam from third countries will face a steeper 40% tariff. In a reciprocal move, Vietnamese imports of U.S. products will enjoy a zero-tariff regime.
Vietnam's dominance in the sector is clear. In 2024, the U.S. imported $9.40 billion worth of furniture from the country, with $5.54 billion of that consisting of wooden furniture. This gives Vietnam a commanding 40% share of the U.S. wooden furniture market, surpassing both China and Canada.
These new trade terms signal a strategic realignment in U.S.–Asia trade relations, with Trump focusing on bilateral leverage and targeted economic incentives. Industry stakeholders will be watching closely as the long-term effects of these agreements begin to shape global supply chains.
Sources: Trading Economics, Global Wood, MarketScreener
