• Trump announces a tariff investigation on imported furniture, with potential tariffs in 50 days.
• The furniture market has been reacting negatively, particularly impacting stocks of major retailers.
• About 60% of U.S. furniture imports come from Vietnam and China, with market trends showing a decline in demand.

President Donald Trump announced on Friday that his administration has initiated a "major" investigation into imported furniture with the intent of imposing new tariffs. According to Trump, “Furniture coming from other countries into the United States will be Tariffed at a Rate yet to be determined,” highlighting the administration's push to bring manufacturing back to U.S. states like North Carolina and Michigan. This investigation is set to be completed within 50 days, although past similar probes have often taken longer, according to Reuters, India Times, and The Jakarta Post.

The announcement has already affected the stock market, causing shares of companies such as RH (Restoration Hardware), Wayfair, and Williams-Sonoma to decline significantly in after-hours trading. Notably, La-Z-Boy, which produces most of its furniture domestically, saw its stock increase following the announcement, indicating varied impacts across the industry. The U.S. furniture market is currently struggling with a decline in demand for high-ticket items, partly due to high interest rates and a weakened housing market, according to India Times and The Jakarta Post.

The U.S. imported approximately $25.5 billion in furniture in 2024, marking a 7% increase from the previous year, mainly from China and Vietnam. These tariffs are expected to exacerbate existing inflation in the sector, as evidenced by a spike of 0.7% in July consumer prices for home furnishings attributed to previous tariffs. Critics, including the American Home Furnishings Alliance, have argued that these tariffs may not successfully revitalize American industry as intended, suggesting instead that they could harm the existing domestic manufacturing capabilities, according to Reuters, India Times, and The Jakarta Post.