Tariffs, Trade Pressures and What They Mean for Furniture Retailers

 

Analysis based on reporting by Interiors Daily and statements from industry associations.

Trade tensions are nothing new, but the latest U.S. tariff hikes are turning up the heat on the global furniture industry. From 1 October 2025, the U.S. has introduced steep import tariffs: 50% on kitchen and bathroom furniture and 30% on upholstered pieces.

For American retailers such as Wayfair, RH, Williams-Sonoma, La-Z-Boy, and Ethan Allen, that translates to higher costs and hard choices about sourcing and pricing. For European exporters, the challenges are just as acute. According to Interiors Daily, German shipments of kitchen furniture to the U.S. have already dropped by 17.4% this year, prompting industry leaders to call for a coordinated EU response.

What’s Driving the Tariffs?

President Donald Trump argues the tariffs are designed to protect American manufacturing and encourage domestic production. In theory, that gives homegrown brands a competitive edge. In practice, it’s creating a complex web of winners and losers, rewarding those with U.S. factories while tightening the squeeze on import-dependent retailers.

And while the tariffs are aimed at levelling the playing field, it’s consumers who often end up footing the bill. Rising costs ripple through the supply chain, affecting everything from showroom pricing to stock availability.

Europe’s Balancing Act

The measures extend beyond furniture. The U.S. has also applied 15% blanket tariffs on a range of imports and 50% duties on industrial metals such as steel, aluminium, and copper, a double blow for EU manufacturers. Interiors Daily reports that countries like Slovenia could see sector-specific costs rise by as much as 45%, while Ireland is expected to benefit from limited exemptions.

Economists at ING warn that the broader economic impact could be significant:

• Short-term EU GDP decline: -0.3%

• Potential two-year fall in EU exports to the U.S.: nearly 17%

• Projected long-term GDP loss: 0.86%

What It Means for UK & Global Retailers

While these are U.S.–EU trade dynamics, the effects will inevitably ripple into UK retail. For businesses sourcing European-made furniture, expect upward pricing trends, longer lead times, and tighter supply chains. Retailers relying on transatlantic trade may need to navigate:

• Increased wholesale costs

• Price disparities between U.S., EU, and domestic stock

• Challenges in balancing merchandising strategies amid fluctuating availability

In short, global trade is shifting — and so must sourcing strategies.

Adapting to the New Landscape

Independent and mid-sized retailers are well-placed to stay agile. A few proactive steps could make a real difference:

• Diversify sourcing: Explore suppliers in exempt or lower-tariff regions, including potential trade partners in ongoing EU talks with Mercosur, Indonesia, and India.

• Refine product mix: Focus on ranges with stable supply chains or domestic production.

• Be transparent: Honest communication around price adjustments builds customer trust and helps maintain loyalty during times of change.

• Plan ahead: Analysts expect further operational pressures into 2026, so early forecasting and supplier collaboration will be key.

The Retail Reality

Tariffs might sound like distant political policy, but their impact lands squarely on the shop floor. They influence what retailers can stock, how they price it, and how competitive they remain in an already demanding market.

In a climate of slower growth and increasing trade friction, one thing remains certain — flexibility is the retailer’s greatest strength. Those who adapt early, plan smartly, and stay close to their customers won’t just weather the change; they’ll find opportunity in it.

For a deeper look at the data and industry commentary, visit the original Interiors Daily article.