The ongoing trade tensions between the US and China have been making headlines for months, and one of the sectors that could be significantly impacted is the furniture industry.

With the Trump administration’s proposed tariffs on foreign imports, many furniture importers are already reacting to the potential added costs.

For some companies, it’s still too early to take action, while others are making contingency plans to mitigate the effects of the tariffs.

Is this the end of affordable furniture and all other commodities, or is there a silver lining you should know about?

How US Tariffs Could Impact Global Furniture Prices

The National Retail Federation has released a study that examines how a 10 to 20 percent tariff on foreign imports and a 60 to 100 percent tariff on Chinese imports would affect six consumer product categories, including furniture.

According to the study, consumers would spend $8.5 billion to $13.1 billion more for furniture and $6.4 billion to $10.9 billion more for household appliances. This means that a $2,000 mattress and box spring set, for example, would cost $2,128 to $2,190.

For furniture importers, the added costs from the policies would likely be passed on to consumers.

Executives from brands like Martin Furniture and A-America expect the tariffs to be “disruptive” and are currently making contingency plans. Flexsteel, which imports mainly from Vietnam and Mexico, anticipates the tariffs to be “disruptive” and is currently making contingency plans.

Furniture Importers Take a Huge Blow From Increasing Costs

In response to the proposed tariffs, some furniture importers are already taking action.

Lovesach, a furniture retailer, has agreed to a $1.5 million settlement in a lawsuit filed by the Securities and Exchange Commission, which alleged that the company and two of its former employees violated accounting practices.

According to the complaint, former CFO Donna Dellomo and former Controller Yoon Um did not properly record the cost of shipping products from the company’s distribution center to end customers, failing to document invoices for $2.2 million in products.

The SEC alleges that Dellomo and Um concealed the missing expenses to avoid a restatement of Lovesac’s 2023 filings and gave “false and misleading” information to its outside auditors.

Furniture Industry Jumps On Leading Green Technology Trend

In other news, Green Theme Technologies, a New Mexico-based startup specialising in sustainable textile finishing technology, has completed a $6 million Series C funding round.

The company plans to use the funds to develop Empel, a PFAS-free alternative to traditional textile treatments that uses significantly less water. This technology could have a significant impact on the furniture industry, which has been criticized for its environmental footprint.

IKEA’s parent company, Inter Ikea, boosted its profits in 2024, even after implementing price cuts and reporting a subsequent decline in revenue.

Price reductions serve as an effort to draw customers back in after supply chain disruptions led to price hikes in 2021 and 2022, reducing the retail giant’s revenue by 8.9 percent for the financial year ending August 31.

Still, Inter Ikea says the initiative spurred customers to buy more, increasing operating profit to $2.4 billion this year (up from $2.3 billion in 2023).

New Launches and Collaborations Are Breaking The Furniture Scene

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Nou, the vintage e-commerce site launched by content creator Alexia Ioannou, has announced the debut of its first foray into home.

The venture was created after Ioannou and her mother spent time scouring the internet for heirlooms lost during a period of family separation, which led to the launch of a brand centered on offering rare designer vintage shoes, apparel, and accessories.

Its current category expansion follows a summer spent sourcing in Provence, France, leading Nou to emerge as a one-stop lifestyle destination.

This new collection marks a significant expansion for Nou, which is quickly becoming a go-to destination for vintage enthusiasts.

Recommended Reading for Furniture Enthusiasts

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For many years, the kitchen was a workstation hidden from public view and while today the space is used as a place for living and hosting, it often retains much of the clutter that comes with preparing a meal.

In the lead-up to 2008, David Burt of investment research and consulting firm DeltaTerra Capital successfully bet that the subprime mortgage market would collapse.

Now, he’s betting against booming housing markets across the Sun Belt that he expects to go bust in the coming years in the face of intensifying climate change.

Climate Change Strikes Frenzy Among The Housing Market

DeltaTerra believes that within the next five years, roughly one-fifth of residential properties in the U.S. will decline in value as the costs of insurance, home maintenance, and taxes for new infrastructure increase.

As such, he’s putting his money on climate-resilient cities, from Ann Arbor, Michigan, to Chattanooga, Tennessee, as they are expected to withstand increasingly volatile weather events and buying buildings with the ability to survive extreme weather.

In Memoriam: Bernie Marcus, Co-Founder of Home Depot

Home Depot co-founder Bernie Marcus passed away last week at the age of 95.

His journey to building the home improvement giant began when he met future co-founder Arthur Blank early in his career, while the two were working for another industry chain called Handy Dan.

When the pair were fired amid a corporate reshuffling, they went on to establish the chain that would eclipse their former workplace, opening the first two Home Depot stores in Atlanta in 1979.

As the furniture industry continues to navigate the uncertain landscape of tariffs and trade tensions, one thing is clear: the impact will be felt across the board.

Whether you’re a consumer looking to furnish your new home or a business owner trying to stay ahead of the competition, the ripple effects of these policies will be far-reaching. Only time will tell how the industry will adapt and evolve in response to these changes.

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