HIGH POINT — As the industry prepares for High Point Market in a few weeks, company executives are waiting for the final impact of President Donald Trump‘s proposed tariffs to be determined.
Late Friday, the Home Furnishings Assn. (HFA) issued a statement outlining additional details, along with the caveat that more information will be forthcoming as it is revealed by White House officials.
In an email to members, HFA reported the following updates:
- Beginning at midnight on Oct. 14, imports of soft wood, kitchen cabinets, bathroom vanities and upholstered furniture will be subject to Section 232 tariffs. Importantly, there is no ‘on the water’ exemption.
- Those effective rates, as of Oct. 14 are:
- Soft wood – 10%
- Kitchen Cabinets – 25%; increase to 50% beginning January 1, 2026
- Bathroom Vanities – 25%, increase to 50% beginning January 1, 2026
- Upholstered furniture (sofas, chairs, sectionals) – 25%; increase to 30% beginning January 1, 2026
- Those effective rates, as of Oct. 14 are:
- These Section 232 tariffs will apply to all countries EXCEPT for the UK, the European Union and Japan.
- These nations have specific language in their trade agreements that caps these Section 232 tariffs at 10%, 15%, and 15%, respectively.
- Further, these Section 232 tariffs WILL NOT stack on top of reciprocal tariffs or International Emergency Economic Powers Act (IEEPA) duties affecting Brazil (40%), India (25%), Canada (10%), and Mexico (10%).
- However, these new Section 232 tariffs WILL stack on top of China’s existing 20% IEEPA tariff and Section 301 duties of 7.5% to 25%.
- These Section 232 tariffs will apply to the Harmonized Tariff Schedule (HTS) Codes listed in the Presidential Proclamation.
- Following an analysis of those HTS codes, these 232 tariffs focus on upholstered furniture seating, and the exposure to case goods/wood furniture is limited.
- However, HFA members should contact their suppliers and/or customs brokers/staff to determine which HTS codes are being used to import products now and cross-reference those to the Annex in the Presidential Proclamation.
- In his Proclamation of these Section 232 duties, the President instructed the U.S. Trade Representative to continue negotiating with other trading partners to mitigate the impact of timber imports on US national security.
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Peter Theran, HFA CEO, urged members to be proactive with business partners, customers and elected officials. Theran encouraged members to audit their import pipeline and identify products, HTS codes and country of origin. He also recommended that HFA members assess their exposure to the new tariff rates, model pricing and margin impacts to prepare for Oct. 14 cost shifts.
