The U.S. furniture and wood products industry is bracing for a major shift as the Trump administration moves ahead with new tariffs set to take effect October 14, 2025. Under an executive order invoking Section 232 of the Trade Expansion Act, the government will impose a 25% duty on upholstered furniture, kitchen cabinets, and related parts. The rates will increase again on January 1, 2026, rising to 30% for most furniture and up to 50% for cabinetry and component imports. The administration argues the tariffs are necessary to bolster domestic timber capacity and reduce reliance on foreign wood, citing potential national security concerns. Some allies, including the U.K., Japan, and the EU, will see reduced rates of 10% to 15%, reflecting ongoing trade partnerships.
These tariffs and others has triggered an urgent response from retailers and importers. American Eagle Outfitters is taking proactive measures to offset clothing tariff impact financial impact, projecting a reduction in tariff costs from $180 million to $70 million by early 2026 - a cut of more than 60%. The retailer’s strategy blends price adjustments, supplier renegotiations, and sourcing realignments away from high-tariff nations, coupled with improved freight and logistics efficiency.
As tariffs reshape import economics, U.S. companies across the retail and manufacturing sectors are rethinking global sourcing, accelerating diversification, and investing in data-driven supply chain resilience to weather the next wave of trade disruptions.
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