Latest U.S. Tariffs on Furniture Sparks Industry Anxiety

As part of his latest tariff offensive, US President Trump announced on Thursday (the 25th) a 50% tariff on imported kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture. His long-threatened pharmaceutical tariffs also finally came to fruition, with tariffs as high as 100% causing widespread distress in the affected industries.

However, Reuters reported on the 26th that Chinese manufacturers were remaining calm in the face of the latest US tariffs, which were set to take effect on October 1st. The British media outlet visited Lecong, Foshan, Guangdong, known as the "China Home Furnishing Trade and Innovation Capital," but found that local merchants, when questioned about the situation, expressed indifference. They told the media that many Chinese furniture manufacturers had long since abandoned the US market and sought alternatives.

According to Reuters, like other industrial towns in China's "world factory," the Pearl River Delta, Lecong boasts a large manufacturing cluster. Over 180 furniture malls are densely populated with retailers, wholesalers, and distributors, selling everything from plywood tables and chairs to high-end leather sofas.

The Lecong Furniture City Chamber of Commerce's official website states that over 30 years ago, the town became one of China's earliest specialized furniture markets, attracting international clients, including those from Europe and North America, where profits and margins are more attractive.

However, in recent years, geopolitical tensions, tariff pressures, and rising labor and production costs have forced Chinese manufacturers to adjust their business strategies.

Sales manager Feng Junyuan told Reuters that her company, which specializes in fabric seating, has long since reduced its reliance on the US market. Currently, approximately 60% of its products are sold domestically, and 40% are exported, primarily to India and Africa.

"Since November of last year, when the tariff increase became clear, we stopped pursuing the US market. No one is buying there, and we stopped trying to sell there because the costs are simply too high," she said.

Jin Yun, the owner of another mid- to high-end sofa shop, also stated, "Last year's tariff increase had a significant impact. We had two US customers at the time, but after the tariffs took effect, they ultimately canceled their orders, and the business fell through."

He also mentioned that business performance this year has been average, with customers primarily concentrated in the Middle East and Southeast Asia. "Manufacturers across all industries are facing numerous challenges, not just the furniture industry. The market has shrunk, and competition is fierce, but we will persevere."

Data shows that US furniture imports will reach $25.5 billion in 2024, with 60% coming from Vietnam and China. A New York Times analysis noted that the share of furniture, kitchen cabinets, and bathroom cabinets imported into the US has been increasing in recent years, and tariffs could have a significant impact on consumers and homebuilders.

(Analysis from Reuters)

Reuters noted that before imposing the tariffs, Trump pledged in August to help North Carolina, South Carolina, and Michigan "revitalize the furniture industry." However, US government data shows that domestic furniture manufacturing employment has halved since 2000, to only about 340,000 people.

Analysts reiterated their warnings that Trump's targeting of sofas and cabinets could trigger price increases with long-term consequences. Industry executives also expressed concern that given the country's heavy reliance on imports from China, Mexico, and Vietnam, there could be a gap in domestic furniture manufacturing capacity.

Earlier this month, Gary Friedman, CEO of RH, a high-end home furnishings company, stated, "Expanding domestic production capacity would require years of investment in building facilities and training the workforce, a cost that most companies in the industry cannot afford."