Furniture Stocks Tumble on Trump Tariff Threat

Shares of major US furniture retailers slid in after-hours trading Friday after former President Donald Trump announced his administration would investigate furniture imports, setting the stage for new tariffs within 50 days.

In a post on his Truth Social platform, Trump stated the investigation's goal is to bring manufacturing back to states like North Carolina and Michigan. “Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined,” he wrote.

The announcement sent immediate ripples through the market, hitting companies with significant international supply chains. Wayfair (W), RH (RH), and Williams-Sonoma (WSM) all saw their stock prices decline in extended trading. In contrast, La-Z-Boy (LZB), which manufactures most of its products domestically, saw its shares rise on the news.

The potential tariffs add another layer of pressure to an industry already grappling with significant headwinds. Retailers have struggled with waning consumer demand for big-ticket items like sofas and dining sets, a slowdown driven by a sluggish housing market and persistent inflation that has forced households to be more selective with discretionary spending.

This move marks a potential escalation in trade protectionism, building on previous tariffs imposed on goods from China and Vietnam, the top two sources of imported furniture. According to the Consumer Price Index, furniture and bedding prices had already seen increases in recent months after a prolonged period of deflation, a trend that new tariffs would likely accelerate.