I'm LongbridgeAI, I can summarize articles.President Trump has delayed the implementation of higher tariffs on certain furniture and kitchen cabinets until January 1, 2027, providing relief to homeowners and furniture retailers. The tariffs were initially set to increase from 25% to 30% for upholstered furniture and from 25% to 50% for kitchen cabinets and vanities. This decision comes amid a struggling housing market and concerns over inflation. Investors are advised to monitor stocks in the home-furnishing sector, with Wayfair seeing a significant rise in shares, while others like Williams-Sonoma and RH faced declines in 2025.
By Barbara Kollmeyer
A troubled U.S. housing market, coupled with fear of tariff costs passed on to inflation-weary consumers, weighed on home-furnishing stocks in 2025
The new year could bring some relief for some furniture retailers as the Trump White House will delay planned higher tariffs.
Consumers bracing for higher U.S.-imposed tariffs on imports of certain furniture and kitchen cabinets may be getting a New Year's reprieve after President Donald Trump delayed those new levies for a year.
Under a proclamation published late Wednesday by the White House, planned increases in tariffs set to kick in on Jan. 1 for upholstered furniture, kitchen cabinets and bathroom vanities will be delayed until Jan. 1, 2027.
Tariffs on certain upholstered items of furniture were set to rise to 30% from 25%, while those on imported kitchen cabinets and vanities were due to rise to 50% from 25%, following a September proclamation from Trump. The tariffs were blamed on "large scale 'FLOODING' of these products into the United States" from other countries. China and Vietnam are the top importers.
"The United States continues to engage in productive negotiations with trade partners to address trade reciprocity and national security concerns with respect to imports of wood products," read the New Year's Eve proclamation.
Investors might want to watch stocks in related companies on Friday when the market reopens to kick off 2026.
Shares of home-furnishings retailer Wayfair (W) climbed 126% in 2025, with the home-furnishings company reporting improved third-quarter revenue from shoppers buying ahead of tariffs rising to 25%.
Faring less well, toward the furnishing market's higher end, Williams-Sonoma shares (WSM) finished the year down 3%, while shares of RH (RH), formerly known as Restoration Hardware, dropped 54%. Shares of MillerKnoll (MLKN), whose interior-designer-favored brands include Hay, Herman Miller, Knoll and the retailer DWR, lost 19% in 2025.
A troubled housing market has weighed on shares of those companies, which have also faced concerns over rising tariffs.
Read on: The U.S. economy is facing no shortage of worries as it heads into 2026
-Barbara Kollmeyer
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01-01-26 1104ET