The U.S. has delayed tariff increases for upholstered furniture, kitchen cabinets and vanities for an additional year, the White House announced in a fact sheet Wednesday.
Since Oct. 14, kitchen cabinets, vanities and upholstered wooden products like couches, sofas and chairs have incurred a 25% tariff. On Wednesday, the rate for cabinets, vanities and associated parts was slated to jump to 50%, while the tariff for upholstered furniture would have increased to 30% prior to the delay.
The current 25% tariff will remain in effect for another year as a result, per the fact sheet. Some exceptions are in place based on agreements the U.S. has reached with trading partners such as the United Kingdom, Japan and the European Union.
The Trump administration imposed the tariffs following a Section 232 investigation that found current wood import quantities and trade practices threatened U.S. security. An overreliance on foreign timber, lumber and derivative products could harm the country's defense capabilities and construction industry while undermining domestic producers, per the fact sheet.
The White House said talks with other countries on "trade reciprocity and national security concerns" for wood product imports are continuing.
"Given the ongoing productive negotiations regarding the imports of wood products, the President is delaying the tariff increase to allow for further negotiations to occur with other countries," the White House said.
Ongoing tariff pressures and uncertainties have forced furniture retailers to adjust their strategies. Lovesac is executing a tariff mitigation plan that features price bumps, sourcing diversification and supplier concessions. La-Z-Boy raised prices following the implementation of the 25% furniture tariff, but the company expected to maintain its current pricing even if the duty rate jumped further, executives said in November.
