The Home Furnishings Association (HFA) is closely monitoring the recent tariff updates affecting exports, which have had significant impacts across multiple regions: 46% from Vietnam, 34% from China, 32% from Taiwan, and 20% from the EU.
Recently, manufacturers have responded in diverse ways to mitigate the effects of these tariff updates. Some are offering further discounts to counter the 10% tariffs from China, while others are absorbing the costs entirely, relocating operations, or adopting a wait-and-see approach. Unfortunately, this round of tariff increases will negatively impact all stakeholders in the home furnishings ecosystem. Even domestic manufacturers, who may not directly import finished goods, rely on imported components such as hardware, upholstery, and cut-and-sew kits.
Recognizing the gravity of the situation, HFA has been actively engaging in discussions with officials on Capitol Hill, liaising with prominent media outlets, and collaborating with members to provide essential data that supports informed policymaking. As we continue our advocacy efforts, the broader economic and political landscape surrounding tariffs is evolving rapidly.
CBS News reports that new survey data finds poll respondents “say[ing] the Trump administration is focused too much on tariffs, and by contrast, is not focused enough on lowering prices.” Republican lawmakers are increasingly alarmed over the economic turmoil that could follow a new wave of tariffs.
Growing Concerns Over Tariff Policy and Economic Stability
With new data and expert opinions emerging, the national conversation is shifting toward the long-term effects of these trade policies on businesses, consumers, and overall economic stability. Recent reports highlight growing concerns among economists, business leaders, and lawmakers about the potential ripple effects of increased tariffs.
CBS News reports that new survey data shows respondents believe the Trump administration is too focused on tariffs and not focused enough on lowering prices. Meanwhile, Republican lawmakers are increasingly alarmed over the economic turmoil that could follow a new wave of tariffs.
While President Trump has framed his plan as a “Liberation Day” for the American economy, concerns are mounting that additional tariffs could drive up consumer costs, disrupt key industries, and rattle financial markets. Over the weekend, Goldman Sachs raised its 12-month recession probability to 35%, up from 20%, citing weaker economic conditions and escalating trade tensions, while the Federal Reserve Bank of Atlanta forecasts a contraction in the first quarter with minimal GDP growth.
A joint survey released by the Richmond Fed, the Atlanta Fed, and Duke University found that companies that don’t import from Canada, Mexico, and China expect to raise prices by 2.9% this year. However, companies that rely heavily on imports from these tariffed countries plan to raise prices by 5.1%.
In response, GOP lawmakers and business groups are quietly working to limit the scope of these tariffs and push for exclusions in their states, fearing further destabilization of local economies. Economists at Goldman Sachs project that this tariff increase will drive up consumer prices while unemployment could climb to 4.5% by the end of the year.
With the potential for widespread economic consequences, Americans are left wondering whether their elected representatives will make the case for pro-growth economic policies, cutting unnecessary regulations, and harnessing energy capabilities to positively impact household budgets and drive down prices.
What Republican Leaders and Economic Experts Are Saying
Representative Don Bacon (R-NE): “‘In the end, consumers pay more. And so it’s going to raise costs.’ Ultimately, Bacon said he views Trump’s reciprocal tariffs as a ‘negotiating’ tactic – ‘but even then, look at the ruckus all this causes. Our stock market doesn’t handle this stuff too well.’” (POLITICO, 3/31/25)
Susan Collins, President, Federal Reserve Bank of Boston: “It looks inevitable that tariffs are going to increase inflation in the near term. My kind of modal outlook would be that that could be short-lived. There are risks around that, and depending on how things unfold, it may be more persistent and a larger increase.” (Fortune, 3/28/25)
Ellen Zentner, Chief Economic Strategist, Morgan Stanley Wealth Management: “It looks like a ‘wait-and-see’ Fed still has more waiting to do. Today’s higher-than-expected inflation reading wasn’t exceptionally hot, but it isn’t going to speed up the Fed’s timeline for cutting interest rates, especially given the uncertainty surrounding tariffs.” (CNBC, 3/28/25)
Senator Ron Johnson (R-WI): “They [tariffs] have a purpose, but they can do some great harm as well.” (The Washington Post, 3/29/25)
Stephen Moore, Co-founder, Committee to Unleash Prosperity, and Former Trump Economic Advisor: “We’re trying to steer Trump away from some of these protectionist tariffs – the steel and aluminum tariffs, for example, are not very effective. If you want to save manufacturing jobs, this is not the way to do it. There’s danger all the tariff stuff is drowning out the tax stuff.” (The Washington Post, 3/29/25)
Looking Ahead
As the tariff updates continue to evolve, HFA remains committed to advocating for policies that support the home furnishings industry and the broader economy. We will continue working with lawmakers, providing essential data, and ensuring our members’ voices are heard in the national conversation.
To address these challenges, HFA is organizing a gathering in Washington, D.C., from May 13-15, where retail members will meet with their state representatives in Congress to advocate for urgent action. This event will provide a critical opportunity for retailers to voice their concerns and push for policies that promote industry stability and economic growth.
The economic implications of tariffs extend beyond just our industry, affecting consumers, businesses, and the financial markets. With shifting policies and ongoing debates, it’s critical for retailers and manufacturers to stay informed, adapt, and engage in advocacy efforts that support long-term stability and growth.
Stay in the loop on updates at MyHFA.org or reach out for more information on our advocacy efforts.
