Getting Real About Trump's Furniture Tariffs: A Behind-the-Scenes Look
U.S. furniture producers adapt to a changing international trade landscape
It's crunch time for American furniture makers. And with Trump's tariffs adding fuel to the fire, they're feeling the heat in a big way.
Trade wars are no joke, and they're hammering domestic furniture manufacturers. Even those with stateside mills and production centers are taking a hit from the turbulent global supply chain.
Take a peek at Valdese Weavers, a Tar Heel State textile powerhouse. They're a trusted supplier to Arhaus and Restoration Hardware, but their yarn components still hail from 17 countries—some like India and Turkey getting the tariff treatment.
Trump Shuts Down Chinese Loophole for Cheap Stuff
Here's the deal: Trump's tariffs on Chinese imports have pushed prices sky-high. Some tariffs reach an astonishing 145%. And it's not just fabric prices that are driving up the cost, folks. Chinese fabric prices have gone up by a whopping 20-50% according to Valdese Weavers president, Blake Millinor.
Despite efforts to bring manufacturing back stateside, the game isn't that simple. In 2020, imported furniture accounted for nearly 61% of everything sold—86% of wood furniture and 42% of upholstered furniture. And don't forget, China, our No. 1 source of imports, tops the list with a hefty $12.6 billion, closely followed by Vietnam at $12 billion.
Why American Pride Needs a Global Support System
Here's the kicker: most U.S. companies have to import certain components to keep things running smoothly. Even Vaughan-Bassett, a U.S. bedmaking legend with headquarters in Virginia and North Carolina, can't escape this reality. Most of their wooden furniture gets made domestically, but they still have to import a chunk of their hardware, finishes, and packaging.
Century Furniture, part of the Rock House Farm Family of Brands, is 100% made in the U.S. But they're still relying on foreign suppliers like China for acrylic and metal components. It's not their preferred setup, but they just can't find what they need stateside.
The Political Spin and Moving Forward
Trump's been chatting up North Carolina's furniture legacy, claiming the region's been gutted by outsourcing but can bounce back. "Thousands of companies are going to move back to the U.S. and North Carolina," he says. "Already, the furniture folks are starting to move back."
Millinor's not entirely convinced. "We're in a position to boost production, we've got the labor, we've got the equipment," he says. "But the next administration might change everything all over again. That's what makes investing such a headache."
The Future: Homespun with a Global Flavor
The furniture industry's balancing on a tightrope between a domestic revival and global interdependence. At the recent High Point Furniture Market, the largest U.S. trade show, the mood was all about finding new sources and locking down the supply chain.
With geopolitical risks, cost pressures, and shifting consumer demands, one thing's crystal clear: the future of American furniture lies at the intersection of ingenuity and international negotiating power.
This report was updated with additional insights from our friends at FOX Business correspondent Gerri Willis on "The Big Money Show."
References:1. ABC News: How Trump's tariffs are hitting American companies2. U.S. International Trade Commission: Imports of Furniture in 20203. FOX Business: Trump's China Tariffs Could Boost American Manufacturing4. CBS News: Trump to raise tariffs on remaining Chinese goods
- The turbulent global supply chain, exacerbated by Trump's tariffs, is causing challenges for American furniture manufacturers, even those with stateside mills and production centers.
- Despite efforts to bring manufacturing back stateside, American companies still rely on foreign suppliers for certain components due to a lack of domestic availability.
- In 2024, the future of American furniture could be at the intersection of ingenuity and international negotiating power, as geopolitical risks, cost pressures, and shifting consumer demands demand a delicate balance between domestic revival and global interdependence.
- Given the impact of trade wars on the economy and investment, the uncertainty surrounding the next administration's policies is causing apprehension among American business leaders, making strategic planning and long-term investments particularly challenging.
