The Home Furnishings Association (HFA) remains committed to advocating for policies that support furniture retailers and the broader home furnishings industry. In a recent effort, HFA joined over 115 industry associations in opposing the U.S. Trade Representative’s proposed shipping tariffs, which could significantly increase costs for businesses and consumers. While supporting fair trade practices, HFA and its allies stressed the need for balanced solutions that protect American jobs and supply chains without imposing excessive financial burdens.
HFA Opposes Costly Shipping Tariffs
The Home Furnishings Association (HFA), along with over 115 other trade associations representing key U.S. industries, signed a letter opposing the U.S. Trade Representative’s (USTR) proposed actions under the Section 301 investigation into China’s maritime, logistics, and shipbuilding dominance. While supporting scrutiny of China’s practices, the letter argues that USTR’s proposed fees would raise container shipping costs by at least 25%, adding $30 billion in annual costs for businesses and farmers. This would increase consumer prices, weaken U.S. export competitiveness, and hurt American jobs.
The letter warns that ocean carriers may reduce services to U.S. ports, shifting shipments to Canada and Mexico, disrupting supply chains, and harming smaller port economies. While supporting domestic shipbuilding, HFA and other signatories stress that USTR’s export requirements are unrealistic and would shrink U.S. exports. Instead, they urge a long-term investment strategy to strengthen American industries without harming businesses and consumers.
Donald Trump Considers Two-Step Tariff Regime On April 2
President Donald Trump is considering a two-step plan for new tariffs. He would use emergency powers to impose immediate fees on imports while his administration investigates other countries’ trade practices. The goal is to create a legally strong tariff system while raising money for tax cuts.
Trump has scheduled April 2 as the official day to announce these tariffs, calling it “liberation day.” This has triggered a rush from other countries to negotiate exemptions. However, there is still debate within his administration on how exactly these tariffs will work and what industries will be affected.
One approach under discussion is launching trade investigations (known as Section 301 probes) while using emergency powers to apply immediate tariffs. These could be as high as 50% on some imports and may involve old trade laws that haven’t been used in decades. There is also talk of reviving a study from his first term to impose tariffs on imported vehicles, which could be announced soon. Another option, though less likely, is a temporary tariff of up to 15% for 150 days using a 1974 trade law.
Trump Tells Cabinet He Hopes Fed Will Lower Interest Rates
President Donald Trump reiterated his call for the Federal Reserve to cut interest rates during a Monday Cabinet meeting as he continues pushing the central bank on monetary policy. “Generally, prices are coming down, and energy prices are coming down, and I hope the Fed lowers interest rates, and then you get to see interest rates coming down,” Trump said. In a social media post last week, Trump said that the Fed would be much better off cutting rates as his planned tariffs hit the economy after officials held their benchmark interest rate steady on Wednesday for a second straight meeting. Trump’s administration is preparing to announce a sweeping set of new tariffs on April 2, which Federal Reserve Chair Jerome Powell signaled was hanging over forecasts.
Lower Freight Costs Offer Margin Relief
The recent drop in spot container rates—down 9% to an average of $4,900 per container—presents a crucial opportunity for furniture retailers to regain some margin relief after months of rising costs due to supply chain disruptions. With freight costs stabilizing, now is the time to act strategically: retailers should consider pulling forward shipments to take advantage of lower rates, negotiating new freight contracts before the expected summer increases, and re-evaluating pricing strategies to reflect reduced landed costs. Proactive planning in response to these market shifts will help furniture retailers strengthen their bottom line and maintain a competitive edge.
Housing Market Fluctuations Impact Furniture Sales
February 2025 saw a 2.9% decline in home construction activity compared to last year, alongside a 6.8% drop in building permits. These figures suggest a slowdown in new home development, a key driver of furniture sales. However, there’s a silver lining—housing starts jumped 11.2% from January to February, signaling potential growth in the coming months. If this momentum continues, demand for home furnishings could rise as new homeowners begin decorating and furnishing their spaces.
As the debate over shipping tariffs and trade policy continues, HFA will remain vigilant in protecting the interests of home furnishings retailers. With fluctuating freight costs, evolving economic conditions, and shifting housing trends, strategic planning is essential for businesses to navigate these challenges. By staying informed and proactive, furniture retailers can position themselves for long-term success despite the uncertainties in global trade and the economy.
