US Furniture Industry Hit Hard by New Import Tariffs

On October 14, the US government introduced a new round of import tariffs on furniture, kitchen cabinets, and wood products. Some tariffs reach as high as 50%, with plans to increase further on January 1, 2026. The government said this move aims to boost the US furniture industry, especially in North Carolina, a state historically known for its manufacturing. However, the market and economic data suggest the tariffs may not achieve this goal. US consumers are facing higher costs, and the new tariffs are becoming a heavy burden for both consumers and businesses across the country.

US Furniture Industry Faces Heavy Impact from New Import Tariffs

For US importers who rely on global supply chains, the new tariffs create serious business pressure. Jofran, a furniture company based in Massachusetts, sources most of its products from Vietnam, Indonesia, and India. Since the last round of tariffs, Jofran has cut about 20% of its staff, the largest reduction since the 2008 financial crisis. Company leaders say the tariffs have sharply increased import costs. To keep the business running, they had to raise product prices. This change has affected overall sales and profit.

These higher import costs are not limited to companies. Consumers are also paying the price. Furniture prices in the US have risen sharply. Living room, kitchen, and dining furniture increased by 9.5% year-over-year in August 2025. Some imported furniture now costs $300 more per item on average.

Companies like Jofran rely on suppliers in Vietnam, Indonesia, and India. Tariffs have forced them to rethink orders and shipping schedules. Some factories face idle capacity, while US businesses adjust to maintain stock.

I recently visited a furniture store in Greenville, South Carolina. Staff explained that many products had higher price tags due to tariffs. Shoppers expressed frustration, noting that even basic items had become noticeably more expensive.

Challenges for the US Furniture Industry in North Carolina

The US government hopes tariffs will bring jobs back to North Carolina, a state once known for its furniture manufacturing. Since the 1990s, the state lost about 80,000 furniture jobs. Today, only around 28,000 remain.

Industry leaders doubt that tariffs alone can restore the sector. Alex Shuford, CEO of Rock House Farm Furniture, said his company operates 11 factories in North Carolina, but some of its brands still rely on imports. He worries that tariffs may benefit local manufacturing in theory, but the broader industry ecosystem could suffer.

Rising raw material costs, labor shortages, and higher wages make large-scale, low-cost production difficult. Even new factories struggle to compete with overseas production.

Factor	Impact on Local Manufacturing
Jobs lost since 1990s	~80,000
Remaining furniture jobs	~28,000
Labor shortages	High
Raw material costs	Rising
Dependence on imported components	Moderate to high

Global Ripple Effect of the Tariff Policy on the US Furniture Industry

The impact of the new tariffs goes far beyond the United States. The US furniture industry depends heavily on imported wood, cabinets, and finished furniture. The new policy is reshaping global trade routes and creating new pressure across supply chains.

Asian countries such as China, Vietnam, Indonesia, and India are among the top exporters to the US. Many of their factories once filled market gaps left by earlier trade disputes. Now, these manufacturers are seeing fewer orders and idle production lines. In Vietnam, for example, several factories have slowed operations due to canceled US contracts.

Canada, one of America’s main suppliers of softwood and lumber, is also under strain. The US recently doubled its anti-dumping and countervailing duties to 35%, in addition to a new 10% tariff. This means Canadian exporters now face combined duties of up to 45%.

Mexico, despite its trade advantage under the USMCA agreement, is also affected. The tariffs apply to its exported wood and finished furniture, reducing the benefit of its geographic proximity.

Export Country	Main Products Affected	Tariff Burden	Current Impact
Vietnam	Furniture, wooden panels	High	Factory slowdown, fewer orders
China	Furniture, kitchen cabinets	High	Reduced exports to the US
Canada	Softwood, lumber	Very High (≈45%)	Cost increase for US importers
Mexico	Furniture, wood products	Moderate	Competitive pressure increasing
India & Indonesia	Furniture, raw wood	Moderate to high	Export delays, idle capacity

I recently spoke with a supplier contact in Ho Chi Minh City who said many local factories have started shortening worker shifts to cut costs. “We used to ship three containers a week to the US,” he said. “Now, it’s just one.”

These tariffs are pushing companies worldwide to reconsider their strategies. Many are searching for new markets or shifting supply chains to other regions. This global disruption adds uncertainty to trade and raises production costs across the board.

Conclusion

The new tariffs have placed the US furniture industry at a crossroads. While the policy aims to rebuild local manufacturing, the short-term cost is clear. Importers face higher expenses, consumers pay more for everyday furniture, and manufacturers around the world are struggling to adjust.

Industry experts agree that tariffs alone cannot revive the once-booming production centers in states like North Carolina. Without solving issues such as labor shortages, raw material costs, and supply chain efficiency, the dream of a full manufacturing comeback remains distant.

However, there are signs of adaptation. Some US companies are exploring hybrid models—keeping design and assembly at home while sourcing parts globally. Others are investing in automation to offset rising labor costs. These efforts may gradually reshape the US furniture industry into a leaner, more flexible sector.

As one North Carolina manufacturer put it, “We can’t turn back the clock, but we can learn to build smarter.”
This statement captures the current mood across the industry: cautious optimism mixed with hard reality. The coming years will test whether the US furniture industry can transform challenge into opportunity.

Kury can help your business navigate these changes. Explore Kury’s solutions today to manage supply chains, reduce costs, and stay competitive in the evolving US furniture industry.