Tariffs and trade are front and center of President Trump’s domestic economic agenda. On Day 1 of his Administration, the President signed the America First Trade Policy Executive Order, which laid out a broad trade agenda, including an aggressive push for across-the-board tariffs and reciprocal tariffs. As the early April deadlines in that order approached, President Trump declared April 2, 2025 ‘Liberation Day.’
On April 2, 2025, President Trump announced an expansive set of tariffs on all countries exporting goods to the United States. Given the negative impacts of these recurring trade deficits, the president declared a national emergency, allowing these tariffs to be implemented under the authority of the International Emergency Economic Powers Act (IEEPA).
The President set a minimum 10% effective tariff rate (effective 12:10 am Eastern Time on April 5, 2025) for goods imported into the United States (from all countries), however, the Executive Order also creates adjusted tariff rates for countries with additional tariff and non-tariff barriers for US goods entering their country. Importantly for the home furnishings industry, the countries below will have adjusted tariff rates. (See full list White House Reciprocal Tariff Chart Apr 2025)
- China – 34%
- Vietnam – 46%
- India – 27%
- Indonesia – 32%
- Malaysia – 24%
These newly adjusted tariff rates will go into effect as of 12:01 a.m. Eastern Time on April 9, 2025. Another key point is that these reciprocal tariffs, specifically as they relate to China, will be additive to existing Section 301 (25%) and IEEPA (20%) tariffs.
However, these reciprocal tariffs WILL NOT apply to a selection of goods, including those listed in Annex-II Reciprocal Tariff Order:
- Articles subject to 50 USC 1702(b) (informational materials)
- Steel/aluminum articles and automobiles and parts already subject to Section 232 tariffs
- Copper, pharmaceuticals, semiconductors, and lumber articles
- Any articles that may be subject to future Section 232 tariffs
- Bullion
- Energy and other minerals not available in the United States
Previously, the Section 301 tariffs on goods imported from China led to accelerated supply chain diversification with production leaving China. The President’s goal with this reciprocal tariff effort is to re-shore manufacturing jobs in the United States and bring in lost revenue from years of trade disparities across the world. A movement back to the United States for the furniture industry is reliant on more than trade policy; Permitting, training a skilled workforce, and managing the higher costs of U.S. manufacturing are significant hurdles.
HFA is continuing to monitor the impact of these actions on home furnishings retailers, our suppliers, and consumers.
De Minimis Reforms
During recent HFA Member fly-ins in Washington, DC, our members raised issues with non-compliant products entering the U.S. market via the de minimis exemption, primarily from China. Currently, products with a value of less than $800 are expedited through the customs process and are not eligible for tariffs and/or duties. In addition to the reciprocal tariffs, the Administration is eliminating the de minimis exemption on goods imported from China, beginning on May 2, 2025.
In lieu of the de minimis exemption, goods imported from China, shipped by international postal networks, will be subject to duties of:
- 30% of their value effective 12:01 am EDT May 2, 2025.
- or $25 per item effective 12:01 am EDT May 2, 2025 – before 12:01 am EDT June 1, 2025.
- Or $50 per item effective 12:01 am EDT June 1, 2025
Carriers are responsible for paying the duties owed.
The sweeping changes to U.S. trade policy, including across-the-board tariffs and the elimination of the de minimis exemption for Chinese imports, mark a significant shift in global trade dynamics. While the administration aims to boost domestic manufacturing and address trade imbalances, these policies will have far-reaching implications for home furnishings retailers, suppliers, and consumers. The Home Furnishings Association remains committed to monitoring these developments, advocating for industry interests, and providing timely updates to help businesses navigate this evolving landscape. Catch HFA Lobbyist, Chris Andresen, as he talks live about the implications of the above issues facing the home furnishings industry.
