The U.S. has announced tariffs of 50% on kitchen and bathroom furniture and 30% on upholstered furniture, effective from 1 October 2025. The Association of the German Furniture Industry urged the European Commission to act, highlighting the potential impact on German exports, which fell 17.4% for kitchen furniture in early 2025. Similarly, the Home Furnishings Association warned that tariffs could raise costs for retailers and consumers, disrupting sourcing and merchandising strategies. Industry executives criticised the measures, citing difficulties in reviving domestic production.
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New tariffs on imported furniture announced by the Trump administration are affecting major U.S. retailers, including Wayfair, Williams-Sonoma, La-Z-Boy, Ethan Allen, and RH, by increasing costs. The U.S. furniture market relies heavily on imports, and analysts expect higher consumer prices as companies pass on additional expenses. Firms with greater domestic manufacturing, such as La-Z-Boy and Ethan Allen, may better withstand the impact.
President Trump stated the tariffs aim to protect American manufacturing jobs and promote domestic production. The policy marks a notable shift in trade strategy, with its full effects on retailer earnings and market dynamics set to emerge in upcoming financial reports. However, importers face higher costs and supply challenges. Analysts expect minimal impact on holiday sales but warn of pricing pressures and operational hurdles in 2026.
The European Union faces significant economic pressure from renewed US tariffs under Donald Trump. Although front-loading boosted EU exports to the US early in 2025, the latest measures, including a 15% blanket tariff and punitive 50% duties on steel, aluminium, and copper, are set to slow trade. ING economists estimate a direct short-term GDP impact of -0.3%, with further risks from indirect effects such as disrupted production, job losses, and reduced investment.
Tariff impacts vary across member states, with Slovenia potentially facing a 45% rise due to sector-specific duties, while Ireland benefits from exemptions. The effective EU-wide trade-weighted tariff rate has surged to 19.6%, sharply above 2024 levels. Over the next two years, EU exports to the US could fall by nearly 17%, and long-term GDP losses may reach 0.86%.
To mitigate these risks, the EU is pursuing alternative trade avenues, including deals with Mercosur, Indonesia, and India, aiming to diversify markets and reduce dependence on US trade.
The combined pressures of slowing EU growth and U.S. trade barriers underscore a challenging environment for the transatlantic furniture sector, with price disparities, fluctuating trade flows and potential supply chain disruptions shaping market dynamics.
Sources: ING; Reuters; IndexBox; CGTN; Lesprom Network; English News
