As of July 22, 2026, furniture retailers face a rapidly changing trade environment with potential implications for product costs, sourcing, and inventory planning.
New Section 301 tariffs on imports from Brazil took effect today, while a 50% tariff on specified Canadian goods under Section 338 is scheduled to take effect on August 19. These developments come as the current 10% Section 122 tariffs are set to expire Friday, raising questions about whether additional trade measures will be announced as a replacement.
For the home furnishings industry, these policies are more than developments in Washington. They could affect essential materials, supplier costs, retail margins, and the prices consumers ultimately pay.
Brazil Tariffs Take Effect
The new Section 301 tariffs on Brazilian imports went into effect on July 22. This action is especially relevant to the furniture industry because leather is a key component of furniture imported from Brazil.
Brazil and Italy are the two largest exporters, making Brazil an important part of the supply chain for upholstered furniture and other home furnishings.
This is an important distinction for policymakers. Tariffs do not necessarily encourage domestic production when there is little or no domestic supply available to replace the affected import. Instead, the added cost may move through the supply chain and ultimately reach retailers and consumers.
Retailers should contact vendors to determine their exposure to Brazilian leather and whether related cost adjustments are expected.
Canada’s Section 338 tariffs begin August 19
A separate 50% tariff on specified Canadian imports is scheduled to take effect August 19 under Section 338 of the Tariff Act of 1930.
The effective date reflects the statute’s required 30-day implementation period. Section 338 is particularly noteworthy because it is a rarely invoked—and reportedly never previously used to impose duties—trade authority. Its use signals that the administration is willing to draw from less conventional legal tools to advance its trade agenda.
Although the announced Canadian tariffs may not directly cover furniture, the action deserves the industry’s attention. Canada is an important U.S. trading partner, and changes to the cross-border trade relationship can affect materials, transportation, manufacturing, and broader North American supply chains.
The use of Section 338 may also establish a precedent for future actions affecting additional products or countries.
Friday’s Section 122 deadline remains a key concern
These developments come as the current 10% Section 122 tariffs are scheduled to expire on Friday.
The immediate question for retailers is whether those tariffs will expire without a replacement or whether the administration will announce new duties under another authority. One possibility being discussed is further Section 301 action tied to forced-labor concerns.
No additional replacement action should be treated as final until it is formally announced. However, the approaching deadline gives retailers good reason to prepare for another potential policy shift.
Final thought
This week may prove to be another reminder that tariff policy remains a moving target for the home furnishings industry. With the Section 122 tariff deadline arriving on Friday and new attention on Brazil and Canada, furniture retailers have good reason to stay alert.
Even if the next policy step is not yet fully known, the stakes are clear. Changes in trade policy can quickly affect sourcing decisions, wholesale pricing, inventory planning, and consumer value. HFA will continue to monitor developments closely and provide additional information and updates as necessary to help retailers stay informed and respond appropriately.
