The Supreme Court may have struck down President Donald Trump’s so-called “reciprocal tariffs,” but for many small furniture retailers, the pressure isn’t easing, CNBC writes.
Industry-specific duties of roughly 25% on items like upholstered furniture, kitchen cabinets and vanities remain in place, layered on top of years of higher interest rates and a sluggish housing market.
The sector had already cooled sharply after its pandemic-era boom. After peaking at more than $204 billion in 2021, U.S. home furnishings sales declined in 2023 and 2024. Smaller operators, with thinner margins and fewer sourcing options, are being hit hardest. Some have raised prices 15% to 18% to offset higher import costs, while bankruptcies continue to mount.
Meanwhile, larger, publicly traded chains have been better positioned to absorb tariff pressures and, in some cases, grow sales and margins. The result is a widening divide across the industry, as trade policy uncertainty compounds longer-term structural challenges in housing, consumer spending and financing costs.
Read the full story from CNBC.
