President Donald Trump announced a possible round of U.S. furniture tariffs, sparking debate over their impact on American households. The proposal could extend existing levies to a market heavily dependent on low-cost imports. Analysts believe prices will rise as suppliers pass costs onto buyers, though some producers may absorb part of the burden to remain competitive.
Trump revealed that an investigation into imported furniture is underway. He said the products will face tariffs at a rate yet to be determined. The review will conclude within weeks, after which the administration could implement new measures. Trump argued that the tariffs will bring the furniture industry back to American states such as North Carolina, South Carolina, and Michigan.
The U.S. imported $25.5 billion in furniture last year, representing a 7% increase from the previous year. Vietnam and China accounted for about 60% of total imports, making them the largest suppliers to the American market. Both nations already face country-specific levies, with Vietnamese furniture taxed at 20% and Chinese products at 30%. These measures have already pushed furniture prices higher in recent months.
The government’s consumption expenditure index showed furniture prices rising 1.4% over three months, marking a sharp rebound after years of decline. Analysts noted that prices had steadily dropped from the mid-1990s until the mid-2010s. However, pandemic-related supply disruptions and recent tariffs shifted the trend, causing furniture costs to climb again.
Experts warn that broad U.S. furniture tariffs could further inflate prices for both imported and domestic products. Tariffs raise costs for raw materials and parts, meaning American manufacturers would also face higher expenses. With reduced competition, domestic firms could raise prices as well, limiting relief for consumers.
Michael Sposi, a professor of economics, suggested that foreign producers may lower prices to stay competitive in the U.S. market. Even so, he said shoppers will likely see higher costs in the coming months. Other analysts echoed his view, stressing that the scale of price hikes remains uncertain until tariff rates are finalized.
Despite concerns, Trump claimed that tariffs have not fueled inflation. He argued that companies and foreign governments, not consumers, absorb most of the costs. Inflation currently stands below 3%, a figure the administration cites as evidence that tariffs support U.S. revenue without burdening households.
The debate over U.S. furniture tariffs reflects broader questions about trade policy. While tariffs may bring production back to American soil, they also risk driving consumer prices higher. Buyers across the country are now bracing for the potential effects.
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