“The 90-day tariff extension isn’t a finish line—it’s the starting block for your next profit strategy.”
The trade landscape just gave the home furnishings industry a brief reprieve. President Trump has signed an order extending the current China tariff pause for another 90 days, pushing the timeline into the fall. While this is welcome news for retailers importing from China, it’s only a temporary window. The months ahead offer an opportunity to strategize, adjust, and safeguard your business against potential cost spikes.
The 90-Day Tariff Extension: What It Means for Retailers
For many in the home furnishings sector, China remains a critical source of both raw materials and finished goods. The extension means companies have a bit more breathing room to:
- Plan inventory purchases with greater predictability.
- Adjust pricing strategies before new tariffs potentially take effect in November.
- Manage supply chain costs while consumer prices are already absorbing $122 billion in tariffs each month across industries.
Even with this pause, U.S. trade policies have already added $79 billion in tariffs based on earlier trade levels, impacting everything from the wood in your dining sets to the metal frames in your sofas. The bottom line? Use this time wisely.
“Every dollar matters in retail. Spot hidden costs now, and you’ll stay profitable—tariffs or no tariffs.”
How to Tariff-Proof Your Store
With tariff uncertainties still looming, here are three practical steps to protect your margins and keep your store profitable:
Spot the Hidden Cost Increases
Review your vendor invoices regularly for price bumps that might quietly erode your profits. If costs have risen, initiate a conversation. Many vendors are willing to negotiate better terms, offer bulk discounts, or provide value-adds if you ask.
Adjust Your Pricing Strategy
Focus on your best-sellers and high-margin pieces. Small changes, like shifting a $399 price tag to $425, can significantly boost revenue without alienating customers. To increase perceived value, consider bundling accessories, tables, or add-ons with upholstery.
Get Creative with Promotions
Add value for the customer instead of racing to the bottom with discounts. Offer a gift with purchase, create limited-time product bundles, or run “free delivery days” to encourage sales without sacrificing margin.
The Big Picture: Think Profit, Not Just Price
The 90-day tariff extension is a gift of time, not a permanent fix. Staying proactive with pricing, vendor relationships, and promotions will strengthen your position when trade talks resume.
HFA offers resources and consultants to help members create tailored strategies for navigating these challenges. By acting now, you can protect your bottom line—no matter which way the tariff winds blow in November.
If you have any questions about these tariff issues or want to share their impact on your business, please contact HFA.
