Foreign furniture makers are facing increasing challenges due to new U.S. tariffs. A 25% tariff on imported upholstered furniture, set to rise to 30% in 2026, is driving up costs and complicating sourcing for designers and manufacturers, especially those relying on European craftsmanship.
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These tariffs aim to encourage domestic production, but reshoring comes with higher labour costs, a limited pool of skilled workers, and ongoing reliance on imported materials. Even U.S.-based companies, such as American Signature, are feeling the pressure, with some filing for bankruptcy.
Boutique studios that depend on Italian and U.K. heritage makers are particularly affected, as clients still demand globally sourced statement pieces, but rising prices, tighter margins, and shrinking domestic inventory make these projects increasingly difficult to execute.
Source: www.businessreport.com
