The start of the new year brings important updates on trade policy that directly affect the home furnishings industry. As of January 1, 2026, key changes to Section 232 tariffs have gone into effect—or, in some cases, have been strategically postponed. Here’s what home furnishings retailers need to know and how it could impact your bottom line.
Section 232: A Quick Refresher
Section 232 of the Trade Expansion Act of 1962 allows the federal government to impose tariffs on imported goods that are deemed a threat to national security. While originally applied to steel and aluminum, this authority has been increasingly used to cover a wider range of products, including some that impact our industry.
Good News: Tariff Hike on Wood Products Delayed
One of the most significant developments for home furnishings retailers is the postponement of increased tariffs on wood products, including:
- Upholstered furniture
- Kitchen cabinets
- Bathroom vanities
These products were scheduled to face tariffs of up to 50% beginning January 1, 2026. Thanks, in part, to ongoing industry advocacy and dialogue with policymakers, as well as continued country-level trade negotiations, the Administration has delayed the hike for at least one year, keeping the current 25% rate in place.
What this means for you
Retailers and suppliers now have breathing room to navigate inventory planning, pricing strategies, and supply chain contracts without the immediate shock of higher import duties.
Steel and Aluminum Tariffs Still in Force
Tariffs on imported steel and aluminum remain at elevated levels:
- 50% on most imports
- 25% for imports from select trade partners (e.g., the U.K.)
- Expanded scope includes derivative products used in appliances and furniture components
Fixtures, frames, hardware, and imported finished goods that rely on these materials may be affected by higher costs and tighter supply chains. Planning for volatility is key.
New “Inclusion Process” Signals More Products Could Be Targeted
As of January 1, 2026, the government initiated a new inclusion process that enables stakeholders to propose additional products for Section 232 coverage, including auto parts, tools, and household goods. While furniture isn’t currently in this round, the evolving policy landscape means retailers must stay alert.
How You Can Stay Alert
- Subscribe to HFA’s Advocacy Alerts – We’ll keep you updated on tariff changes and legislative developments.
- Share Your Story – Let us know how tariffs impact your business. Member stories help shape our conversations with policymakers.
- Join HFA’s Advocacy Network – Be part of a unified voice promoting smart, retail-friendly trade policy.
The delay in wood product tariff increases is a welcome relief, but the broader Section 232 landscape remains fluid. Home furnishings retailers must stay informed and engaged to protect their operations in the face of shifting trade policies.
For questions or to get involved, reach out to me at ptheran@nahfa.org.
