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Tariffs to negatively impact the furniture and furnishings sector

• The United States imposed a 10.0% across-the-board tariff on all US imports of foreign goods. Large trading partners like Canada and Mexico also face a 25.0% tariff on goods not compliant with the US-Mexico-Canada Agreement (USMCA), and China faces a base rate of 145.0%.
• The United States is planning on raising the tariff on softwood lumber imports from Canada to 34.4%, which will put upward pressure on wooden-based furniture and furnishings. Canada accounts for around 70.0% of US imports of softwood lumber and about 30.0% of the software lumber consumed in the United States.
• China faces a base tariff rate of 145.0%, which is expected to put upward pressure on US imports of furniture and furnishings from China. According to the China International Furniture Fair, China accounts for around 34.0% of global furniture production.
• According to a FurnitureToday survey of 420 retailers, tariffs are expected to have a significant impact on 70.0% of furniture and furnishings businesses, and few believe they will avoid the impact of tariffs. Around 27.0% of furniture and furnishings retailers are expected raise prices immediately in the face of new tariffs.
• Vietnam is another major exporter of furniture to the United States (as of April 9, there is a 90-day pause on the 46.0% reciprocal tariff for Vietnam); the United States accounts for around 12.0% of Vietnamese wooden furniture exports. The impact of higher average tariff rates will raise costs for US buyers of Vietnamese furniture.

United States announces additional tariffs on China

• In February 2025, the United States announced 10.0% tariffs on imports from China, which took effect on February 4, 2025. In late February 2025, the United States announced an additional 10.0% tariff on imports from China, which took effect on March 4, 2025.
• The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions. In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars.
• In April 2025, a new 34.0% tariff on Chinese imports was implemented, increasing the base tariff rate to 54.0%. An additional tariff of 50.0% was implemented, raising the combined rate to 104.0% due to retaliatory tariffs from China.
• In April 2025, an executive order suspended the Section 321 de minimis shipment exemption (often applied to e-commerce packages), subjecting all shipments under $800 to relevant tariffs. This suspension will be effective May 2, 2025.
• This market sources goods from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.

United States imposes sweeping tariffs on Canada and Mexico

• In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico, which took effect on March 4, 2025.
• The tariff by the United States applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place. However, imported goods covered under the United States-Mexico-Canada Agreement (USMCA) will be exempt from tariffs until April 2, 2025.
• After the tariff took effect, Canada immediately imposed 25.0% tariffs on goods imported from the United States. Mexico also announced plans to impose retaliatory tariffs and non-tariff measures on imports from the United States later this month.
• On March 12, the United States raised tariffs on steel and aluminum imports from all countries to 25.0%, including Canada and Mexico.
• This market sources goods from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.