President Trump announced Friday that his administration is investigating imported furniture for potential tariffs, sending shares of major home goods companies tumbling in after-hours trading.
Trump said the probe would be wrapped up within 50 days, after which furniture imports would face duties at rates “yet to be determined.”
“This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,” Trump posted on his Truth Social platform.
The tariff threat hammered stocks of companies heavily reliant on foreign manufacturing. Wayfair, RH and Williams-Sonoma all saw their shares plunge following Trump’s announcement.
Wayfair, whose stock fell by more than 6% after the closing bell on Friday, imports much of its furniture inventory from overseas suppliers.
Shares of RH were also down more than 6% while Williams-Sonoma stock dropped more than 4% Friday evening.
However, not all furniture companies suffered. La-Z-Boy shares actually rose nearly 2.5% on the news since the company conducts most of its manufacturing operations within the United States.
The furniture industry investigation adds to Trump’s growing list of sectoral tariff targets.
He has already imposed steep duties on automobiles, steel and aluminum while floating similar measures for copper, pharmaceuticals and semiconductors.
Friday’s announcement left unclear whether furniture tariffs would stack on top of existing country-specific duty rates that Trump has negotiated through bilateral trade deals.
The Trump administration has spent months conducting trade negotiations with partners worldwide, seeking to rebalance what it views as unfair global commerce arrangements.
Recent framework agreements with the European Union and China have provided some market stability, though many longer-term trade disputes remain unresolved.
The timing of potential furniture tariffs comes as the industry faces significant headwinds.
Companies like Wayfair have endured more than a year of declining demand for big-ticket items, including couches and dining room sets.
The furniture sales slump stems partly from a sluggish housing market as prospective buyers wait for interest rates to decline before making major purchases.
Fewer new home sales translate directly into reduced furniture demand, since consumers typically buy new furnishings when they move into different residences.
Persistent inflation has also made consumers more selective about discretionary spending. Restaurants, clothing, travel and home decor have all experienced reduced sales as shoppers tighten their budgets.
Trump’s tariff strategy aims to encourage companies to relocate manufacturing operations back to the United States, particularly in states with strong furniture-making traditions.
North Carolina and other southeastern states historically served as major furniture production hubs before much of the industry migrated overseas in search of lower labor costs.
The investigation represents another step in Trump’s broader trade agenda focused on reducing America’s reliance on foreign manufacturing across multiple industries.
Previous tariff announcements have produced mixed results, with some companies announcing plans to reshore production while others have absorbed higher costs or passed them on to consumers.
The Post has sought comment from the American Home Furnishings Alliance.
