WSM, W, RH: U.S. Furniture Retailers Catch a Break on Trump's Tariff Delay

After months of waiting anxiously, American furniture retailers such as Williams-Sonoma (WSM), Wayfair (W), and RH (RH) have gotten a breather. President Donald Trump on Wednesday approved a one-year delay of tariff hikes on furniture, kitchen cabinets, and vanities that were set to take effect on Thursday.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Industry observers have warned that Trump's tariffs would squeeze margins at furniture chains that depend heavily on imports, while also pushing retail prices higher for shoppers. Trump Keeps the 25% Upholstered Furniture Tariff In late September, the U.S. president imposed a 10% levy on imported softwood timber and lumber and a 25% charge on "certain" upholstered wood items as well as kitchen cabinets and vanities. The measures took effect on October 14. More importantly, Trump also signed off on lifting the rate on these upholstered wood products to 30% and on kitchen cabinets and vanities to 50% — both by January 1, 2026. However, the American leader has now delayed that move until January 1, 2027, although the 25% tariff from October remains effective. The White House, in a fact sheet providing the update, noted that "President Trump recognizes that an overreliance on foreign timber, lumber, and their derivative products could jeopardize the United States' defense capabilities, construction industry, and economic strength." Trump Blasts Flood of Imported Furniture In a social media post published in late September, Trump also lambasted the "very unfair practice" that results in "large-scale flooding" of the U.S. with foreign furniture products. Moreover, Trump, in a proclamation document, decried the contributions of imported wooden products in "weakening our economy, resulting in the persistent threats of closure of wood mills and disruptions of wood product supply chains, among other things." Globally, the U.S. is one of the top importers of wooden furniture products. In 2024, the country accounted for about a quarter of all global furniture imports, according to ResearchAndMarkets. Germany, the UK, France, and the Netherlands are also key importers. What Are the Best Furniture Retailer Stocks to Buy? The TipRanks Stock Comparison Tool offers guidance on which stocks in the furniture retailing industry are worth investing in right now. Please refer to the image below.