TMTPOST -- U.S. President Donald Trump on Tuesday vowed to impose new sectoral tariffs very soon.
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Trump at a Cabinet meeting said he would impose a “very substantial tariff” on imported furniture soon, and the new duties would be done “pretty quickly.” Trump expressed his protectionist stance on furniture trade. He said he wants to revitalize furniture manufacturing in North Carolina and South Carolina, two states in the Southeastern U.S.
Trump didn’t providing any more details about the upcoming furniture tariffs, but teased benefits from the hefty levies. A 100% or 200% tariff would have prevented China from becoming dominant in the furniture industry, the president said.
Furniture stocks dropped following Trump’s tariff threat. Wayfair shares pared more than 3% gains at midday and closed over 0.3% lower on Tuesday. RH lost 4.1%, while Ethan Allen shed nearly 0.7%.
Trump last Friday suggested the furniture tariffs could come within next 50 days when announcing “a major Tariff investigation” into related imports has been opened.
“Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined,” Trump said in a post on his social media platform Truth Social. He continued:“This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union.”
Furniture prices in the United States have been increasing over the past few months as Trump raised tariffs on countries including China and Vietnam, the top two sources of imported furniture. Both countries exported $12 billion worth of furniture and fixtures last year, according to U.S. Commerce Department data.
Analysts said it is difficult to forecast the extent of the furniture price hikes due to Trump’s new tariffs since details of the proposed policy remain unknown.
“If tariffs go into place, it almost certainly will increase prices for furniture – to furnish that new house or upgrade the couch the dog destroyed or whatever it might be,” Tyler Schipper, a professor of economics at the University of St. Thomas, told ABC News.
