As President Trump marks his first 100 days in office, the home furnishings industry, like many other industries, is closely watching the ripple effects of sweeping policy changes. From federal agency shakeups to aggressive trade stances and regulatory rollbacks, Trump’s early moves are reshaping the economic landscape for retailers and manufacturers. While some changes have yet to materialize fully, others are already creating uncertainty and potential opportunities for our industry.
Here’s a breakdown of the key developments and what they could mean for home furnishings businesses:
Federal Funding and Workforce Disruptions
One of the most ambitious structural shifts in Washington has been the Department of Government Efficiency (DOGE) creation. While its name may sound innocuous, DOGE’s primary role is to consolidate agencies, reduce overhead, and eliminate departments seen as redundant or overreaching.
Among the most notable casualties was the Consumer Financial Protection Bureau (CFPB). While the CFPB has not been a central player in the home furnishings space, its closure symbolizes a broader retrenchment of federal consumer protections. Retailers who offer in-store financing or partner with third-party finance providers may find the regulatory environment more fluid, with fewer compliance guardrails, potentially greater risk, and less guidance.
These agency changes may disrupt federal grant programs, workforce training funds, and economic development initiatives that some regional manufacturers rely on, particularly in rural communities.
Trade Policy: New Rules, New Risks
Perhaps the most direct and potentially disruptive policy shift has come in the form of trade realignment. President Trump’s administration has introduced a reciprocal tariff policy, whereby tariffs imposed by other nations are matched in kind. The administration has also announced a blanket 10% global import tariff on many categories of goods, including furniture. This global rate is currently in effect until July 8, 2025. In the meantime, HFA is continuing to monitor any developments related to bilateral trade agreements with the U.S. and our trading partners.
Most significantly, tensions with China have escalated for our sector, resulting in an additional 145% tariff on furniture imports from the country. Given that China is a dominant supplier for many U.S. furniture manufacturers and retailers, this action could reshape sourcing strategies almost overnight.
Retailers may face increased prices on bestselling product lines, leading to narrower margins or the need to raise consumer prices. Domestic manufacturers might see an opportunity to regain market share, but capacity, raw material costs, and supply chain agility will be critical factors. For importers, the sudden cost hikes could create major inventory and pricing challenges heading into peak seasons.
Tax Reform in Motion
The Trump administration, in coordination with Republican Congressional leaders, has also set its sights on broad tax reform. While full details are still being negotiated, the general framework points to lower corporate tax rates and potential relief for pass-through entities such as LLCs and S-corporation structures common among independent retailers and family-owned manufacturers. President Trump has repeatedly pledged to deliver the ‘biggest tax cut in American history.’
If passed this summer, the reform could provide a financial lift for many in the home furnishings industry, freeing up capital for expansion, hiring, or reinvestment in operations. However, there’s uncertainty over which deductions or business expenses may be eliminated to offset rate cuts. Retailers should stay in close contact with their tax advisors to understand how the final legislation could impact their bottom line.
Deregulation on Overdrive
One of President Trump’s hallmark executive orders mandates a 10-to-1 deregulation ratio: for every new federal regulation introduced, 10 existing ones must be eliminated.
While details on enforcement remain vague, the impact could be significant for sectors burdened by federal compliance, including manufacturing. Environmental, labor, and workplace safety rules could be re-evaluated, potentially reducing overhead or removing compliance complexity. For example, manufacturers may see loosened EPA guidelines or OSHA regulations that currently impact facility operations or employee classifications.
However, this aggressive approach also creates uncertainty. Many businesses rely on stable regulatory frameworks to plan. A sudden vacuum or inconsistent enforcement could pose risks, particularly for companies that operate across multiple states or jurisdictions.
Bottom Line: A Time of Transition
President Trump’s first 100 days have ushered in a period of rapid transformation. For the home furnishings industry, this moment presents a mixed bag: an opportunity for domestic growth, potential tax savings, and relief from regulatory burdens, but also significant volatility in trade, supply chain disruption, and uncertain federal policy support.
Retailers and manufacturers must stay agile. Now is the time to:
- Re-evaluate sourcing strategies and supplier relationships.
- Monitor tax reform developments closely.
- Prepare for possible price volatility and shifts in consumer demand.
- Advocate for industry interests as the federal government reshapes itself.
The coming months will determine whether these early policy changes solidify into lasting advantages or require costly adaptation.
HFA’s Government Action Relations Team, along with other industry stakeholders, will fly to Washington, D.C., from May 13 to 15, 2025, to visit with congressional representatives, voice concerns, and advocate for urgent action that promotes home furnishings industry stability and economic growth.
