Trump Launches National Security Probe into Furniture Imports, Stocks Plummet After Hours

President Trump has launched a national security probe into furniture imports into the US, aiming to reshore jobs and domestic manufacturing. Furniture and home furnishing stocks have declined after hours following the announcement. The investigation will be conducted under Section 232 of the Trade Expansion Act, but the industry remains skeptical about the potential tariffs. RH, Wayfair, Williams-Sonoma, and Arhaus Inc. have seen steep declines after hours.

President Donald Trump has announced a 50-day national security investigation into furniture imports, signaling potential new tariffs. The move aims to boost domestic manufacturing and reshoring of jobs in key states like North Carolina, South Carolina, and Michigan. The investigation, conducted under Section 232 of the Trade Expansion Act, follows a series of recent trade actions by the administration.

In July, the U.S. collected over $29 billion in tariff revenue, the highest monthly total of the year. Treasury Secretary Scott Bessent indicated that part of this rising tariff income could be used to reduce national debt [1].

Trump's announcement sparked immediate market reactions, with furniture and home furnishing stocks declining after hours. RH (formerly Restoration Hardware), Wayfair, Williams-Sonoma, and Arhaus Inc. saw steep declines following the president’s remarks. The U.S. imported an estimated $25.5 billion worth of furniture in 2024, with Vietnam and China accounting for roughly 60% of those imports [3].

The investigation lacks transparency on methodology, affected countries, and tariff calculation criteria, leaving analysts and industry experts skeptical about its potential impact. Analysts warn that increased tariffs could raise consumer costs and depend on the final rates and U.S. production capacity [2].

The Trump administration has increasingly used national security justifications for trade restrictions, a trend that has defined its economic policy in recent years. The furniture tariff investigation is the latest example of this approach, reflecting the administration’s continued focus on reducing reliance on foreign manufacturing and boosting domestic industry [4].

The swift initiation of the 50-day timeline underscores the administration’s aggressive approach to policy implementation. While the final tariff rate and its economic consequences remain uncertain, the move reinforces the administration’s commitment to reshoring manufacturing jobs through trade restrictions. The outcome of the investigation could have broader implications for U.S. trade relations and domestic production capacity [1][3].

References:
[1] https://www.cryptopolitan.com/trump-targets-furniture-imports-trade/
[2] https://www.ainvest.com/news/trump-announces-50-day-furniture-tariff-probe-boost-domestic-industry-2508/
[3] https://www.furninfo.com/furniture-industry-news/25175