Welcome to Furniture Industry News for October 13, 2025.

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Fresh tensions on US China trade new import duties on wood products taking effect this week, a holiday spending outlook that isn't friendly to furniture, evolving supply chain strategies and the final chapter for a long time Northeastern mattress retailer let's get into it the headline driver right now is a new escalation in the US China trade conflict.

President Donald Trump has threatened a 100% tariff on all Chinese imports, a move announced Friday after Beijing introduced new export restrictions on rare earth minerals.

If enacted, a 100% tariff would roughly double the current average levy of 55% on Chinese imports and would stack on top of existing duties, including long running section 301 tariffs and the new section 232 measures on wood derived products taking effect this week.

In some cases, those combined duties could push effective rates on certain Chinese goods to around 130% levels briefly seen at the height of the trade war.

The administration has also tied in new export restrictions on what it calls any and all critical software, with both the tariffs and those controls set to kick in November 1st.

Though details on the software scope aren't yet specified, China's response has been quick and pointed.

Officials criticized the US Move as double standards and warned of resolute measures if the plan proceeds.

At the same time, they defended their own new export curbs on rare earth elements and any products containing trace amounts of those materials, arguing the restrictions are intended to limit access by overseas military users.

The market reaction to the tariff threat was sharp, with major US Indexes logging their worst day in months on Friday before futures steadied a bit on Sunday after a softer presidential tone.

Meanwhile, Chinese trade data show Exports to the US fell 27% year over year in September, marking a six straight monthly decline.

Even with the tough talk, the door to negotiation isn't closed.

Over the weekend, the president described his relationship with China's leadership in positive terms and hinted that discussions could continue for furniture retailers and vendors.

The practical takeaway is that planning cycles will need to account for continuing volatility.

On top of that, there's a concrete set of tariff changes arriving this week for wood products.

On October 10, Customs and Border Protection issued guidance implementing Proclamation 10,976, a Section 232 action that adds duties on timber, lumber and a range of derivative wood products.

These duties apply to entries made on or after 12:01am Eastern on October 14th.

The scope includes softwood, timber and lumber, and critically for our Sector A upholstered wood furniture as well as kitchen cabinets and vanities and parts.

Headline rates start at 10% for softwood, timber and lumber.

Upholstered wood furniture faces an additional 25% unless sourced from the United Kingdom, European Union or Japan, where special capped rates apply 10% at most for the United Kingdom and 15% for the European Union and Japan.

Kitchen cabinets and vanities are also at 25% for most origins outside those regions.

There's an important carve out in the tariff structure.

Certain non completed cabinets and vanities under the specified headings carry a 0% additional duty, so correct product classification matters.

There's also a phase in to watch.

Beginning January 1, 2026, the additional duty on upholstered wood furniture may rise from 25% to 30% and kitchen cabinets and vanities may jump from 25% to 50%, more than doubling the burden on those imports.

The proclamation sets out how These new Section 232 duties interact with other tariff programs for the affected products.

They replace certain reciprocal and IEEPA based tariffs.

To claim those exemptions, importers must use specific Chapter 99 headings when filing.

Businesses operating in foreign trade zones should note that goods admitted on or after the effective date must be in privileged foreign status to preserve the applicable duty rate at withdrawal and that entries withdrawn for consumption will face the section 232 duties.

Duty drawback remains available under existing rules.

For retailers and suppliers, that means a near term checklist.

Expect higher landed costs.

Model the impact at the SKU level and stress test contracts as rates climb in 2026.

Revisit sourcing options toward countries with capped rates where feasible or consider domestic alternatives.

Confirm that customs brokers have the right chapter 99 lines ready and and that parts versus completed goods are accurately classified.

If you use bonded warehouses or FTZs, reassess admission status and withdrawal timing.

Make sure drawback processes are ready and keep an eye on the possibility that more wood products could be added or that compound tariffs could emerge if circumvention is detected while costs are rising, demand signals for furniture this holiday season are soft.

A new KPMG survey finds consumers expect to spend more overall, but mainly because prices are higher, not because they plan to buy more.

80% say tariffs will lead to higher prices.

In a companion data point, a recent Furniture Today survey found that 77% of respondents are aware tariffs could affect furniture prices, and 30% say they'll delay a purchase until they know more about the impact.

Within category expectations, KPMG reports consumers plan to spend less on furniture, down 12%, as well as on toys and hobby supplies, even as they nudge up spending slightly on apparel and personal care.

At the same time, travel looks like a major competitor for discretionary dollars.

Expected holiday travel spend is up 10% year over year, with Americans planning to spend an average of $1,127 and more shoppers making big ticket trips of $1,000 or more.

How shoppers research and decide is also shifting.

According to KPMG, 41% of consumers use AI to research purchases, with adoption even higher among younger shoppers, 56% for Gen Z and 62% for millennials.

AI powered assistants are helping with tailored recommendations, style advice and try on experiences.

And platform influence remains strong.

Nearly 70% of shoppers reported making a purchase after seeing something on Amazon.

For furniture dealers, the challenge is maintain visibility and relevance as discovery fragments across AI tools in major marketplaces and adapt targeting to meet customers where they actually start their journeys.

Supply chains are evolving in parallel.

A new industry survey shows 72% of supply chain leaders are actively diversifying their supplier base away from concentrated risks, signaling a move from reactive crisis response to a more proactive strategic footing.

Roughly a third are prioritizing resilience initiatives and another third are putting emphasis on improving forecasting accuracy.

Confidence is also on the rise 84% say they're confident in their fulfillment systems for 2025, up from 70% a year ago.

Fewer leaders expect next year to be tougher 46% now, down from 77% who thought 2024 would be worse than 2023.

Three quarters expect to outperform competitors and two thirds anticipate better profit margins.

Despite cost pressures to support those goals, investment priorities are lining up around visibility and control.

About a third are putting real time cost tracking and margin analysis at the top of the list, with another third focused on multi region supplier management and risk assessment and a similar share prioritizing technology integration for better data visibility.

Workforce planning is part of the strategy as well.

Most organizations are cross training their people to stay flexible, hiring seasonal workers earlier to build competence before peak, and increasing compensation to attract and retain talent.

Finally, one notable retail development in the sleep category, Metro Mattress, is winding down for good.

A US Bankruptcy court judge in the Northern District of New York has authorized going out of business sales free and clear at six locations across the state, and the company has begun liquidation.

The retailer had already started closing its other 34 stores on October 6th.

Founded in 1976, Metro Mattress once operated around 70 stores.

At its peak, it filed for Chapter 11 in September 2024 and subsequently shuttered roughly 30 New England and New York locations earlier this year in an effort to focus on its more profitable New York stores.

But losses continued.

The company's site now promotes the liquidation, with banners advertising discounts up to 70% on major brands like Beautyrest, Tempur, Pedic and Sealy.

In court, the company's attorney said they were running out of money very quickly.

Efforts to find a buyer were unsuccessful.

The liquidation is expected to take about five weeks, with remaining merchandise moved among stores as needed.

The order allows transfers and sales without further third party approvals so long as general consumer and safety laws are followed.

A final hearing on the liquidation authorization is expected in the coming weeks, after which the full closure plan is likely to be finalized.

So that's where we are A fluid trade backdrop that could raise costs sharply New wood product duties landing now and escalating in 2026 holiday demand tilting away from furniture even as AI reshapes discovery supply chains growing more resilient and data driven and a legacy retailer exiting the stage for teams across merchandising, sourcing and operations, the immediate priorities are cost, modeling, classification, accuracy, supplier diversification and sharpening digital engagement to meet changing shopper behavior.

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