Wayfair (W), RH (RH), and Williams-Sonoma (WSM) were among home furniture stocks getting hit on Monday after President Trump on Friday suggested furniture imports would face future tariffs at a rate “yet to be determined.”
Trump said in a post on Truth Social late Friday that his administration would be doing a “major Tariff Investigation on Furniture coming into the United States.”
“Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined,” Trump added.
Wayfair stock fell as much as 7% on Monday, while RH stock dropped as much as 6% and Williams-Sonoma fell nearly 3%.
Shares of all three retailers fell late Friday following Trump’s initial post on the investigation from his administration.
Shares of companies that manufacture in the US rallied. La-Z-Boy (LZB) stock gained almost 1%, and Ethan Allen Interiors (ETD), which has 75% of its manufacturing in North America, also rose.
Furniture sellers have been hit over the past couple of years by a stagnant housing market and a squeeze on consumer discretionary spending outside of the highest-earning cohorts.
“There’s no question the higher-end market is stronger than mass,” Wayfair CEO Niraj Shah said during the retailer’s quarterly earnings call earlier this month as he described the overall discretionary market.
“I think the market is still flat to down low-single digits. And I would describe the market not as having strength, but as sort of feeling like it’s bottomed out, like bumping along the bottom.”
Despite Monday’s losses, Wayfair shares are higher year to date as the online home goods retailer has improved its cost structure and suppliers have shifted their manufacturing to other Asian countries outside of China amid Trump’s evolving tariff policy.
“We continue to monitor the evolving trade landscape and remain confident in our ability to adapt as needed,” read a statement from Wayfair on Monday.
Read more: What Trump’s tariffs mean for the economy and your wallet
RH is down more than 48% year to date after hitting a 2025 low in April. Since then, the stock has rallied more than 50% after the high-end furniture seller announced it had moved much of its Chinese production to Vietnam and “a meaningful amount” to its own factory in North Carolina.
It remains unclear whether the Trump administration’s furniture tariff investigation will result in rates that exceed the levies placed on the country of origin.
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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