The US furniture industry is caught in a storm it did not fully see coming. A wave of new tariffs hitting imported sofas, kitchen cabinets, and vanities has pushed business owners into a corner, forcing tough decisions on pricing, sourcing, and survival. And with more policy shifts still in motion, the uncertainty is far from over.
How the Furniture Tariff Fight Began
In late August 2025, Trump posted that a “major Tariff Investigation on Furniture” had begun, with results expected in 50 days.1 That announcement alone rattled markets.
On September 30, 2025, the president issued a proclamation announcing tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture of 25 percent, effective October 14, 2025.2
According to Trump, the tariffs were created to stop the “flooding” of furniture into the USA from other countries. “The reason for this is the large scale ‘flooding’ of these products into the United States by other outside countries,” he wrote.3
This investigation was carried out under Section 232 of the 1962 Trade Expansion Act, which ties tariffs to national security concerns.1 Critics, however, were quick to push back. There is no “national security” basis for these tariffs, and they won’t accomplish the administration’s stated goals4, according to the Cato Institute.
US furniture industry tariff impact on small business owners 2026
The Numbers Behind the Disruption
The scale of America’s furniture import dependency makes these tariffs land especially hard.
The US imported $6.4 billion worth of upholstered furniture in 2024, with roughly 75% coming from Vietnam and China. Vietnam accounted for about $3.1 billion, while $1.75 billion came from China.5
The US also imported $2.2 billion in wood cabinets and countertops in 2024, with Vietnam supplying $922 million of that total.5
Here is what the tariff structure looks like in practice:
| Product Category | Tariff Rate (Oct 2025) | Planned Increase | Status |
|---|---|---|---|
| Upholstered Furniture | 25% | 30% | Delayed to Jan 2027 |
| Kitchen Cabinets | 25% | 50% | Delayed to Jan 2027 |
| Bathroom Vanities | 25% | 50% | Delayed to Jan 2027 |
| Softwood Lumber | 10% | Pending | Active |
| UK Wood Products | Capped at 10% | N/A | Active |
| EU and Japan Products | Capped at 15% | N/A | Active |
Furniture prices have been outpacing inflation, with living room, kitchen and dining room furniture rising 4.6% in November from a year earlier, compared with a 2.7% annual increase in the overall Consumer Price Index.6
That gap between furniture price growth and overall inflation tells the real story for everyday American families.
Who Is Winning and Who Is Bleeding
Not every player in this space is hurting equally. The gap between large retailers and small business owners has never been more visible.
Over the last year, at least 10 furniture businesses have declared bankruptcy, with some liquidating and ceasing operations altogether. Most of the companies are smaller businesses, which have been hit harder by tariffs because they have fewer resources than their larger competitors.7
Meanwhile, RH, Williams-Sonoma and Wayfair have all grown sales and margins even as they faced higher import costs. In the nine months ended November 1, RH saw sales grow almost 10% as margins expanded.7
On the flip side, some domestic makers are seeing opportunity in the chaos.
- La-Z-Boy and Ethan Allen, which still maintain some US manufacturing, saw modest gains1 when tariff news broke.
- Retailers dependent on imports may struggle, while domestic and Amish furniture makers could see a boost in demand.1
- Items such as solid wood dining tables, bed frames, coffee tables, bookshelves, and office desks are generally not included in the current 25% import duty8, giving some segments a cushion.
Higher costs on imports are the latest blow to the furniture industry, which had been buckling under high interest rates and a sluggish housing market well before tariffs came into the picture.7
The Policy Rollercoaster Is Not Over
Just when businesses thought they had clarity, the rules shifted again at the end of 2025.
On December 31, 2025, President Trump signed a proclamation delaying higher tariffs on upholstered furniture, kitchen cabinets, and vanities until January 1, 2027. The proclamation cited “productive negotiations with trade partners to address trade reciprocity and national security concerns regarding imports of wood products” as the reason for the postponement.9
Under the proclamation, the existing 25% tariffs imposed in September 2025 remain in effect through at least January 1, 2027.10
Then came an even bigger legal twist. The Supreme Court struck down President Donald Trump’s “reciprocal tariffs,” but new duties on upholstered furniture, kitchen cabinets and vanities remain in place regardless of the ruling.7
On March 11, 2026, United States Trade Representative Jamieson Greer announced the initiation of multiple Section 301 investigations following the Supreme Court’s invalidation of tariffs imposed using the International Emergency Economic Powers Act.11 That means the fight for control over what gets taxed and how is still very much alive.
“Even if tariff strategy ended up with the worst possible outcome for my business, I would then…” A CEO of one of the largest furniture retailers in the country, quoted by CNBC, summed up the feeling across the industry: deep frustration paired with a desperate need for predictability.
What Furniture Buyers and Businesses Should Do Now
The ground keeps shifting, but there are clear steps both businesses and consumers can take right now.
For business owners:
- Audit open purchase orders immediately and identify shipments that may land under new duty conditions.
- Some brands have responded by shifting production to Vietnam or Mexico, modifying materials or design, or adjusting supply chains8 as a buffer.
- Raw material prices, especially wood and hardware, are climbing due to import restrictions. American retailers are seeking alternative sourcing hubs in countries like Mexico, Vietnam, UK, or Japan to mitigate tariff exposure.12
For consumers:
- While certain imported upholstered furniture and cabinets carry a 25% tariff in 2026, many other furniture categories are not subject to the furniture tariff. Items such as solid wood dining tables, bed frames, coffee tables, bookshelves, and office desks are generally not included.8
- Even furniture that is not tariffed may still reflect broader supply chain costs, shipping rates, and material price fluctuations.8
- Buying American-made furniture, where possible, is the only guaranteed way to fully avoid import tariff exposure right now.
The Trump tariffs are the largest US tax increase as a percent of GDP since 1993 and amount to an average tax increase per US household of $1,500 in 2026.2 For the furniture industry alone, that ripple is being felt from factory floors in Vietnam all the way to showroom floors in Ohio. The 25% tariffs are locked in through at least January 2027, steeper hikes are still looming beyond that, and new Section 301 investigations could reshape the rules all over again. Small business owners are the ones carrying the heaviest load, and families shopping for a new sofa or kitchen remodel are quietly absorbing the cost too. This is not just a trade story. It is a story about American homes, livelihoods, and whether Washington’s trade bets will ever pay off for the people on the ground.
What do you think about the impact of furniture tariffs on American families and small businesses? Share your thoughts in the comments below.
