RH shares down 5.4% premarket after Trump announces fresh tariffs on furniture imports

RH shares down 5.4% premarket after Trump announces fresh tariffs on furniture imports

September 12, 2025

In a significant development, RH, a leading provider of home furnishings, saw its shares drop by 5.4% premarket on Wednesday, following the announcement of new tariffs on furniture imports by former President Donald Trump. The tariffs, set to take effect on October 1, include a 30% levy on upholstered furniture, which is a key product for RH.

Trump's administration has stated that the tariffs are aimed at boosting domestic manufacturing and reducing the federal budget deficit. The president has argued that foreign companies are flooding the U.S. market with cheap goods, particularly furniture, threatening local producers .

The new tariffs have sparked mixed reactions among industry leaders. While some domestic manufacturers may benefit from reduced competition, others are concerned about the potential impact on their operations. The American Furniture Manufacturers Association has expressed mixed feelings, acknowledging that while the tariffs might benefit some producers, others might struggle to stay afloat .

Investors are closely monitoring the developments, as the tariffs could lead to higher production costs for RH and other affected companies. This could, in turn, result in increased prices for consumers and potentially impact the company's revenue. Additionally, the tariffs could disrupt global supply chains, leading to further uncertainties for businesses.

The broader economic implications of the tariffs remain to be seen. While the intention is to protect American jobs and industries, there are concerns that the higher costs on imports could lead to increased inflation and slower economic growth. Businesses already adjusting to earlier tariffs may face more uncertainty .

RH's shares have been volatile in recent weeks, with the company reporting mixed earnings in its latest quarter. The new tariffs add another layer of uncertainty for the company and its investors. As the situation continues to unfold, investors will be closely watching RH's response to the tariffs and their potential impact on the company's financial performance.