Trump's furniture tariffs crash retail stocks

President Trump announced Aug. 22, 2025 Section 232 national security investigation into furniture imports, threatening tariffs within 50 days on $25.5 billion annual U.S. furniture market dominated by Vietnam and China suppliers.

Vietnam and China account for approximately 60% of U.S. furniture imports worth $15.3 billion annually ($9.4B from Vietnam, $5.94B from China), making them primary targets for tariffs that took effect Oct. 14, 2025 at 25% rates.

Furniture retail stocks crashed in after-hours trading Aug. 22, 2025: Wayfair fell nearly 8%, RH declined approximately 7%, Williams-Sonoma dropped about 7% as investors fled companies dependent on import supply chains.

Domestic furniture manufacturers La-Z-Boy (+1.6%) and Ethan Allen (+7%) saw stock prices rise in after-hours trading as investors anticipated benefiting from reduced import competition despite limited U.S. production capacity.

Existing country-specific furniture tariffs already pushed home furnishing prices up 1.4% in three months ending Jun. 2025, representing significant acceleration from decades of declining furniture costs.

American Home Furnishings Alliance opposes Section 232 tariffs, stating in Commerce Department comments that "there is no rational relationship between imports of wood products or furniture and the national security of the United States."

U.S. furniture manufacturing employment has declined significantly over decades, with the American Home Furnishings Alliance stating "no amount of tariffs will bring back American furniture manufacturing back to its prior levels."

National Retail Federation estimates furniture tariffs could cost American consumers additional $8.5-13.1 billion annually, with furniture prices increasing 6-10% as families bear import tax burden through higher retail prices on sofas, cribs, and mattresses.