New Trump Tariffs Rattle Furniture Retailers, RH Stock Slides

President Donald Trump's administration has unveiled a new round of tariffs on imported furniture, sending shockwaves through the retail sector and causing a notable decline in the stock of luxury furniture retailer Restoration Hardware (RH). The new tariffs, set to take effect on October 1, will impose a 50% levy on imported kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture, according to .

The announcement had an immediate impact on the market, with RH's stock falling by as much as 4.2% in pre-market trading. This follows a previous warning from the company about the potential impact of tariffs on its sales outlook. In a statement, RH's CEO, Gary Friedman, expressed concerns about the industry's ability to quickly shift production to the United States, noting that it would "require years of investments in building the facilities and workforce that most in this industry cannot afford to make".

Other retailers heavily reliant on imported furniture, such as Williams-Sonoma and Wayfair, also saw their shares decline. In contrast, companies with a larger domestic manufacturing presence, like La-Z-Boy and Ethan Allen Interiors, experienced a modest boost in their stock prices. The tariffs are expected to exacerbate the challenges already faced by home furnishings retailers, who are contending with a stagnant housing market, as .

The new tariffs are likely to lead to higher prices for consumers, as retailers will be forced to pass on at least a portion of the increased costs. This could further dampen consumer demand in a sector already struggling with affordability issues. The long-term effects of these tariffs on the furniture industry and the broader retail landscape remain to be seen, but the initial market reaction suggests a period of uncertainty and adjustment lies ahead for both companies and consumers.