Furniture Retailer Stocks Surge Following Trump’s Tariff Pause
Shares in home furnishing retailers saw a significant rise on Friday after President Donald Trump announced a one-year delay on higher tariffs affecting upholstered furniture, kitchen cabinets, and vanities. The move brought immediate relief to a sector that has been grappling with tariff-related price concerns for months.
RH, Wayfair, and Other Retailers Benefit from Trump’s Decision
Among the notable gainers, luxury furniture retailer RH saw its stock jump by 9.5%, followed closely by online retailer Wayfair, which surged 6.3%. Shares in Williams-Sonoma, a company known for its kitchenware and home decor, climbed 5.3%. Other furniture retailers like Ethan Allen and La-Z-Boy saw more modest increases, up by 1% and 0.4%, respectively.
The announcement comes after the White House confirmed that tariffs on furniture and home furnishings would remain at the original 25% rate, which Trump set in September. Originally, tariffs were set to rise on New Year’s Day, with the rate on upholstered furniture expected to reach 30%, and tariffs on kitchen cabinets and vanities to increase to 50%.
Economists Express Concerns Over Potential Price Hikes
Economists had expressed fears that the tariff hikes would result in substantial price increases, especially as furniture is a particularly tariff-sensitive category. For many American families, purchasing furniture is a significant investment, making them more vulnerable to price hikes caused by tariffs.
In November, data from the Consumer Price Index showed that furniture and bedding prices were up 3% year-over-year, adding to concerns about rising living costs. With the tariff increases delayed, retailers and consumers alike are breathing a sigh of relief.
White House Defends Tariff Strategy Amid Ongoing Trade Talks
The White House issued a fact sheet on Wednesday explaining that the delay in tariff hikes was a result of ongoing trade negotiations, not a retreat from its broader tariff agenda. The statement emphasized that the U.S. was continuing to engage in productive discussions with trade partners to address issues of trade reciprocity and national security, particularly concerning the imports of wood products.
As part of the ongoing negotiations, the U.S. government is awaiting a Supreme Court decision on a vast batch of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). If the Court rules that Trump overstepped his authority, the U.S. government could be forced to refund as much as $168 billion to businesses that were affected by the tariffs.
Trump’s Views on Tariffs and National Security
In a post on Truth Social, Trump defended his tariff policies, describing them as “an overwhelming benefit to our nation.” He argued that tariffs have been beneficial for U.S. national security and prosperity, stating that the country would suffer a “terrible blow” if it lost the ability to impose tariffs on countries that treat the U.S. unfairly.
Reports suggest that Trump is preparing to introduce a fresh wave of tariffs if the Supreme Court strikes down the current levies, potentially leveraging alternative trade laws.
Mixed Results in the Furniture Industry
The U.S. furniture industry saw mixed results in 2025, with online giant Wayfair experiencing a major surge. Shares in Wayfair climbed more than 125% last year as consumers increasingly prioritized value and deals. On the other hand, RH, the luxury retailer, struggled significantly, ending the year with a more than 50% decline in its stock price. The company’s CEO, Gary Friedman, made headlines in April when he went viral for his reaction during an earnings call, exclaiming “Oh s–t” as the company’s stock price plummeted.
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Trump’s decision to pause the planned tariff hikes has provided much-needed relief to the furniture sector, even as trade talks continue and broader tariff debates unfold.
