President Donald Trump has recently threatened to impose tariffs on imported furniture, a move that could significantly impact prices in the U.S. market. Analysts warn that if these tariffs are enacted, consumers may face higher costs as importers pass on some of the tax burden. However, some suppliers might absorb these costs to remain competitive in a strong market.

The specifics of the proposed tariffs are still unclear, making it challenging to predict the extent of potential price increases. Tyler Schipper, an economics professor at the University of St. Thomas, stated, "If tariffs go into place, it almost certainly will increase prices for furniture – to furnish that new house or upgrade the couch the dog destroyed or whatever it might be."

In a social media post, Trump announced that the White House has initiated an investigation into imported furniture, indicating that the products would be "Tariffed at a Rate yet to be determined." He mentioned that the investigation would conclude within 50 days and expressed hopes that this action would revitalize the furniture industry in states like North Carolina, South Carolina, and Michigan.

In 2024, the U.S. imported $25.5 billion worth of furniture, a 7% increase from the previous year. Vietnam and China were responsible for approximately 60% of these imports. Recently, Trump has implemented country-specific tariffs on major furniture exporters, with products from Vietnam facing a 20% tariff and those from China encountering a 30% levy.

According to Jason Miller, a supply chain management professor at Michigan State University, furniture prices have already begun to rise due to these existing tariffs. The government’s personal consumption expenditure index shows that furniture prices increased by 1.4% over the three months ending in June compared to the previous three-month period. Miller noted, "This is a big jump," especially considering that furniture prices had largely declined from the mid-1990s to the mid-2010s.

The COVID-19 pandemic caused a surge in furniture prices as demand increased while supply chains were disrupted. Although prices had started to stabilize, the introduction of tariffs has led to renewed increases. Miller remarked, "It’s difficult to see many positives from a consumer standpoint at the moment."

If new tariffs are implemented, analysts predict that the price hikes will continue. They also warn that tariffs could increase the cost of furniture components, raising expenses for domestic manufacturers and potentially leading to higher prices for American-made products. Schipper explained, "If you put a large tariff on imported goods, it has the effect of reducing competition in the U.S. If domestic U.S. manufacturers have less competition, they may increase their prices as well."

In a recent social media post, Trump claimed that tariffs have not caused inflation, stating, "Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury's coffers." He added that consumers are not significantly affected by these tariffs, as companies and foreign governments are primarily bearing the costs.

Despite these assertions, analysts note that the overall inflation rate currently stands at 2.7%, which is lower than the 3% rate recorded in January before Trump took office. The exact impact of potential furniture tariffs remains uncertain, as many details, including the specific tariff rate, have yet to be finalized. Some analysts believe that furniture suppliers may absorb some of the costs to maintain competitive pricing in the U.S. market. Michael Sposi, an economics professor at Southern Methodist University, stated, "Foreign producers might have to find ways to lower prices to keep price-competitive in U.S. markets." However, he cautioned that shoppers should expect higher furniture prices in the coming months, adding, "The question will be the magnitude of price increases. At this stage, there isn’t much clarity on what it will look like."