The U.S. Tariff Shake-Up: How UK Furniture, Home & Gift Sectors Can Adapt

Let’s talk about tariffs. They’re back in the spotlight, and this time, UK furniture, home, and gift businesses are in the crosshairs. With a new 10% blanket tariff on UK goods heading to the U.S.—plus extra levies on certain products—brands that rely on American buyers are facing some tough decisions.

So, what does this mean for the industry? Higher costs, supply chain headaches, and some big questions about how to stay competitive in a shifting market. But it’s not all doom and gloom—there are ways to navigate these changes. Let’s break it down.

What This Means for UK Furniture Brands

First up, the furniture sector. If you’re exporting to the U.S., you already know it’s a key market—last year alone, UK manufacturers sent £2.2 billion worth of goods across the Atlantic. But with these tariffs, the numbers aren’t stacking up quite the same way.

• Rising Costs: Even if your finished furniture isn’t directly hit with a 25% tariff, raw materials like steel and aluminium are. That means higher production costs, which ultimately trickle down to the end price.

• Supply Chain Challenges: Many UK furniture makers use components from around the world, including China, which has its own set of U.S. tariffs to contend with. Expect more red tape when it comes to country-of-origin rules.

• Competitiveness at Risk: If American retailers can source similar products from a non-tariffed country at a lower price, what’s stopping them?

 

How the U.S. Tariffs Impact UK Home & Gift Brands

The new tariffs bring a fresh set of challenges for UK home décor and giftware businesses selling into the U.S. While the sector may not be hit as hard as others, the ripple effects could still dampen demand and force businesses to rethink their strategies.

• Higher Costs for Giftware – The 10% tariff directly raises the price of UK-made home and gift products for U.S. buyers, making them less competitive in an already price-sensitive market. With retailers always looking to maximise margins, this could push them to source from non-tariffed countries instead.

• Seasonal Pressures – Timing is everything in the giftware sector. Whether it’s Christmas, weddings, or Mother’s Day, these peak sales periods drive the industry. But if UK-made products become more expensive, U.S. retailers may look elsewhere to keep costs down—just when UK brands need those sales most.

• Supply Chain Strain – Many home and gift brands rely on globally sourced components, including from China—where existing U.S. tariffs already complicate trade. Add in the new UK tariffs, and businesses face rising production costs and more logistical headaches.

While these tariffs won’t cripple the industry, they will challenge UK brands to stay competitive in the U.S. market. To weather the storm, businesses may need to rethink pricing, explore alternative sourcing, or focus on premium branding to justify higher costs.

 

What Can Businesses Do?

It’s easy to focus on the negatives, but let’s shift gears—because there are steps businesses can take to adapt.

Reassess Export Strategies – If the U.S. is becoming a pricier play, it might be time to look at growing markets in Europe or Asia. At the same time, premium branding could help justify those higher prices in America.

Optimise Supply Chains – If your costs are creeping up due to tariffs on raw materials, it’s worth exploring alternative suppliers or renegotiating deals with existing ones.

Collaborate & Advocate – This is where industry associations come in. Now’s the time to push for government support, lobby for tariff relief, and ensure UK businesses get the backing they need.

Stay Compliant, Stay Agile – With new tariffs come new rules. Keeping up with country-of-origin certifications and customs requirements will be crucial to avoiding unnecessary delays and penalties.

 

The Bottom Line? Adapt & Keep Moving

Yes, these tariffs are a headache. They’ll squeeze profit margins, create uncertainty, and force businesses to rethink their strategies. But the UK furniture, home, and gift sectors are nothing if not resilient. This is a moment to pivot—whether that’s finding new markets, refining supply chains, or doubling down on brand value.

The industry has weathered shifts before, and it will again. The key? Staying agile, informed, and ready to turn challenges into opportunities.