Furniture Tariffs: Trump Launches Probe, Home Furnishing Stocks Plummet

President Trump has launched a national security probe into furniture imports into the US, aiming to reshore jobs and domestic manufacturing. The investigation will be conducted under Section 232 of the Trade Expansion Act, and potential tariffs will be imposed on furniture imports from other countries. Home furnishing stocks have declined after hours following the announcement, with RH, Wayfair, and Williams-Sonoma experiencing significant losses.

President Donald Trump has initiated a national security investigation into furniture imports into the United States, aiming to bring manufacturing jobs back to the domestic market. The probe, conducted under Section 232 of the Trade Expansion Act, is expected to conclude within 50 days and could result in tariffs on furniture imports from other countries.

The investigation follows a series of recent Section 232 actions by the administration, including probes into imported wind turbines, semiconductors, and other industries. The goal of the probe is to "bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union," according to Trump's statement on Truth Social [1].

The announcement has had immediate market impacts, with home furnishing stocks experiencing significant declines. RH, Wayfair, and Williams-Sonoma all saw their shares drop after hours following the president's remarks. RH, a luxury furniture retailer, saw its shares fall by 7.5% in after-hours trading [2].

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 furniture industry has been struggling with declining domestic employment, falling from 1.2 million in 1979 to just 340,000 in 2024 [3].

The American Home Furnishings Alliance (AHFA), which represents both U.S. manufacturers and importers, has not yet commented on the new probe. However, the group has previously opposed the use of Section 232 for furniture and related materials, arguing that national security is not a valid justification for import restrictions [3].

The investigation is part of a broader trade strategy that includes recent tariff increases on Indian imports and ongoing negotiations with the European Union and Canada. The U.S. and EU recently finalized a trade framework that will impose a 15% tariff on a wide range of EU goods, while excluding certain categories such as aircraft and generic pharmaceuticals [3].

References:
[1] https://www.newsmax.com/us/tariffs-furniture-imports/2025/08/23/id/1223694/
[2] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-us-to-tariff-furniture-imports-following-investigation-200619445.html
[3] https://www.furninfo.com/furniture-industry-news/25175