Trade policy again took center stage this week as the Trump Administration announced a dramatic shift in its approach to reciprocal tariffs. While the headlines may seem distant from day-to-day operations, these decisions are poised to significantly impact the home furnishings industry, from sourcing and pricing to inventory and logistics.
Tariffs Take a Turn: A 90-Day Pause—Except for China
On April 2, the Trump Administration rolled out its reciprocal tariffs plan. Just days later, President Trump announced a 90-day pause on those tariffs for all countries except China. During this pause, a 10% universal tariff will apply as the US pursues more favorable trade deals with more than 75 nations.
However, China has been singled out with a new 145% reciprocal tariff—effective immediately. Citing a “lack of respect” from China on global trade practices, the Administration made clear that this move is part of a broader strategy to level the playing field. China responded swiftly with its own 84% tariff on US goods, intensifying the ongoing trade standoff.
Since the reciprocal tariff policies were announced, US equity and bond markets have reacted negatively. Businesses, congressional members, and other stakeholders began focusing on a more concrete path forward on trade deals. With this pause, the Administration has shown its position as using reciprocal tariffs for negotiations on more fair-trade deals moving forward.
Why It Matters to Furniture Retailers
The US furniture supply chain is deeply intertwined with China, especially in categories like upholstery and case goods. This sudden tariff escalation will likely raise costs across the board, forcing many retailers and manufacturers to evaluate sourcing alternatives—or pass on cost increases to consumers. Meanwhile, Vietnam and India have been called out by US trade advisers as two of the more aggressive negotiators to watch during this negotiation window.
Early Signs of Fallout: Import Forecasts Drop
According to the National Retail Federation’s Global Port Tracker, import cargo volumes are expected to fall by 20% in the second half of the year. For the furniture sector specifically, 2025 could see a total decline of 15% in import volume. That means longer lead times, tighter inventory, and likely increases in freight costs. It signals for industry professionals to revisit their sourcing strategies and strengthen communication with logistics partners.
Looking Ahead
The markets have responded negatively to the tariff turbulence, but this 90-day pause signals that the Administration is using reciprocal tariffs as a negotiating tool. The outcomes of these talks—particularly the first new deal struck—will serve as a critical benchmark for future trade relationships.
What Should HFA Members Do Now?
- Evaluate sourcing channels—especially if you’re heavily dependent on China.
- Communicate pricing changes to customers early and clearly to maintain trust.
- Revisit inventory planning to prepare for delays or product shortages.
- Stay informed—policy shifts like this can happen fast and hit hard.
HFA will continue to monitor developments and update members with the insights they need to stay ahead. Whether navigating supply chain disruptions or rethinking product mix, staying informed is your best business advantage.
Thanks for reading. We’ll be back next week with more insights into policy developments that affect your business.
