New Investigation Launched
Trump announced a "major" tariff investigation into furniture imports via a post on Truth Social, stating it will conclude within 50 days. Following this, furniture from other countries will be taxed at a rate “yet to be determined.
Legal Basis: Section 232 Invocation
The probe is being carried out under Section 232 of the Trade Expansion Act of 1962, allowing tariffs on imports deemed a threat to national security. It may serve as legal justification if current “reciprocal” tariffs are struck down in court
Boosting Domestic Manufacturing
Trump framed the measure as a strategy to revitalize U.S. furniture manufacturing, which has steeply declined over decades; from 1.2 million workers in 1979 to only 340,000 today. States like North Carolina, South Carolina, and Michigan were specifically mentioned as beneficiaries.
Growing Furniture Imports
The U.S. imported approximately $25.5 billion worth of furniture in 2024—up 7% from 2023—with around 60% of imports coming from Vietnam and China.
Stocks Reacted Sharply
RH (Restoration Hardware): fell 7.5% in after-hours trading
Wayfair: dropped around 6% to 7%
Williams‑Sonoma: down about 4% to 6%
In contrast, La‑Z‑Boy, a predominantly U.S.-based manufacturer, saw its stock rise approximately 2.5% to 3.7%.
