Hello and welcome to another episode of Furniture Industry news.

Today is October 17, 2025 and as always, we're here to bring you the most important developments affecting our industry, from regulatory changes and tariffs to market trends and company updates.

We've got a lot to talk about, so pour yourself a cup of coffee and let's dive in.

Let's begin with a policy change that's generating a lot of questions A new U.S. department of Transportation rule tightening the requirements for non domiciled commercial driver's licenses.

These special licenses allow drivers who live outside the United States, such as in Canada or Mexico, to legally operate commercial vehicles here.

Under the rule announced by Transportation Secretary Sean P. Duffy, foreign based drivers will face stricter eligibility criteria.

States will need to verify immigration or work status, limit how long licenses remain valid and require more documentation to prove legal presence.

U.S. citizens and permanent residents won't be affected, but there will likely be fewer non domiciled drivers on the road.

Industry veteran Edward Massoud noted that while the change could exacerbate driver shortages, he believes it's worth it to improve safety and protect the trucking industry's reputation for our sector.

Fewer available drivers may increase pressure on already strained logistics networks, but having better vetted drivers behind the wheel should reduce accidents and liability concerns.

If tariffs have been keeping you up at night, you're not alone.

The National Retail Federation's latest consumer survey shows that 85% of shoppers expect higher prices this holiday season due to tariffs.

Even so, Americans plan to spend an average of $890 per person on gifts, food, decorations and other seasonal items, just 1.3% less than last year's record and still the second highest holiday spend in the survey's 23 year history.

Most of that budget, about 628 will go toward gift.

Families with children plan to increase their gift budgets by more than $30 on average.

Shoppers are shifting when they buy 42% will begin browsing and buying in October, but nearly two thirds plan to do most of their shopping over Thanksgiving weekend.

With value top of mind.

Gift cards, clothing and accessories are the most desired presents and more than half of consumers will shop online.

These trends suggest that demand remains solid despite economic uncertainty, but retailers may need to lean into promotions and smart timing to capture share.

Those tariffs are also impacting the cost of moving goods.

Global container spot rates rose 2% last week to $1,687 per 40 foot container, ending a 17 week slide.

This uptick coincided with new US duties on wood derived upholstered furniture and cabinetry rates on the Shanghai Los Angeles route ticked up 1% to 2,195 and and shipments to New York climbed 1% to $3,236.

Asia to Europe lanes saw the biggest jumps.

Shanghai to Rotterdam rose 6% to $1,669 and Shanghai to Genoa gained 2% to $1,821, though both routes remain more than 50% below year ago levels.

Carriers are adding general rate increases in response to front loaded demand and further hikes are slated for early November.

Analysts caution that the rebound could be short lived as the as new vessel deliveries are expected to outpace demand, putting downward pressure on prices for importers.

The message is to anticipate some near term volatility while planning for longer term normalization.

On the retail side, companies are grappling with how to handle new tariff related costs.

Ikea's US Division is raising prices on some items and increasing its focus on sourcing products domestically.

The Swedish born retailer says the duties imposed on imported wood products and furniture ranging from 10% to 50% have compelled it to adjust pricing.

A company's statement emphasized that affordability remains a top priority, noting that the US market, with more than 50 stores and thousands of employees, is one of its most important.

Ikea continues to invest in local manufacturing and job creation, balancing necessary price adjustments with its goal of keeping costs low for customers.

This approach illustrates how major retailers may pivot toward domestic production to mitigate tariff exposure while striving to maintain value.

Tariffs aren't just affecting furniture, they're poised to influence housing costs as well.

Recent Section 232 measures impose a 25% duty on imported kitchen cabinets and components, rising to 50% on January 1, 2026.

Softwood lumber imports face a new 10% tariff in addition to existing anti dumping and countervailing duties.

For Canadian lumber, these duties have already increased from 6.74% to 14.63% and when combined with current anti dumping charges, the total could reach 34.2% or even 44.2%.

Because the United States imports roughly one third of the lumber it consumes and Canada supplies about 85% of those imports, higher costs will likely ripple through the housing market.

The national association of Homebuilders warns that rising material costs could push up prices for new homes and renovations, further straining affordability for young buyers.

NAHB is urging policymakers to negotiate a long term lumber agreement with Canada, increase domestic timber production, reduce exports to other countries and diversify sources.

It also endorses policies to expand housing supply, such as enabling more types of homes, loosening inflexible zoning mandates, encouraging infill development near transit and reducing administrative barriers.

Whether these steps will offset the tariff impact remains to be seen, but but the stakes for builders and furniture sellers are Higher construction costs leave consumers with less money for furnishings.

Even with these headwinds, Design and construction professionals report guarded optimism the Q4 2025, whose US Renovation Barometer shows that designers remain moderately upbeat, though recent activity has slowed.

Nearly all respondents expect homeowners to have concerns about project costs, the economy and job stability and tariffs in 2026.

To adapt, many firms are upgrading their technology tools and modifying pricing or contract terms.

Others are placing greater emphasis on marketing and client acquisition to keep pipelines full.

According to WHOOSE staff economist Maureen Sargzian, construction professionals are ending the year with renewed confidence thanks to a surge in third quarter projects and recent interest rate cuts, while design professionals are more cautious because planning cycles may lengthen as clients weigh broader economic factors.

The top homeowner concerns identified by survey respondents include overall project cost, cited by roughly 3/4 of construction pros and 80% of design pros the economy or job stability tariffs 31% of construction and 44% of design securing, financing and competing household priorities.

This suggests that while the appetite for renovation remains, clients are becoming more selective and price sensitive in commercial real estate.

The latest Collier study offers an interesting contrast.

Retail vacancy rates rose to 4.3% in the second quarter of this year, but that figure is still well below the 10 year average because the number of store closings has kept inventory tight.

National asking rents declined slightly to 25.$46 per square foot.

Yet Colliers expects rents to continue a modest upward trend because because new construction remains limited and demand for quality space is high.

In the top 10 retail markets, Los Angeles and Detroit posted the highest vacancy rates at 5.9%, while New York and Atlanta were lowest at 4.1%.

Retail construction totaled 47.9 million square feet, with just 6 million square feet delivered in the second quarter.

Negative net absorption of 6 more million square feet and a 5.2% decline in leasing activity reflect the challenges retailers face.

Yet the shortage of first generation space, especially in fast growing markets like Texas, means rents may not fall dramatically.

Interestingly, average market rents ticked down 0.39%, but mall rents climbed 0.81% to 34.$70 and shopping centers rose 0.91% to 25.$38.

For furniture retailers, evaluating expansion or relocation.

These dynamics underscore the importance of market selection and timing.

Turning to E Commerce, Wayfair is gearing up for its annual Wayday event scheduled for October 26 through 29.

The company is advertising discounts of up to 80% on furniture, decor and home improvement products.

Promotions include sofas under $299, 5x7 area rugs for $49, dining table starting at $199, a memory foam mattress for about $160 and a leather power recliner for around $283.

John Blotner, president of commercial and operations, said that today's customers are more intentional about their homes and that wayday aims to offer value selection and free delivery to help them create spaces they love.

In addition to ongoing discounts, Wayfair will launch daily deals beginning October 20th, offer doorbuster savings and 24 hour flash deals during the event and provide free shipping with many items qualifying for free white glove delivery.

The sale will run across all of Wayfair's US brands, including AllModern, Birch Lane, Jossen Main, Perigold and Wayfair Professional, and will also be available in its brick and mortar locations.

For retailers, Wayfair's strategy illustrates how aggressive promotions of bonds and loyalty incentives are being used to capture share from value conscious customers.

There's also noteworthy activity on the investment front.

Somni Group International, formerly Tempur Sealy, is broadening its mattress portfolio by taking a passive minority stake in Kingsdown.

The size of the investment hasn't been disclosed, but NovaCap, which has owned a majority stake since 2018, remains in control.

Kingsdown CEO Frank Hood said the investment affirms confidence in the company's style and substance brand and its ability to scale craftsmanship and innovation.

He doesn't anticipate changes in day to day operations and expects Kingsdown to continue competing for floor space at major retailers.

Somnigroup's chairman Scott Thompson praised Kingsdown's product line as complementary to his company's portfolio and said the deal reflects a disciplined capital strategy and expectations for long term growth in the US And Canadian betting markets.

Over the past few years, Somnigroup has been busy acquiring mattress firm, investing in sleep tech firm Bright, Purchasing UK retailer Dreams and taking stakes in Sherwood and AI focused Full Power.

The Kingsdown partnership is another sign of consolidation and diversification in the sleep industry.

In Nashville, American Signature Furniture is saying farewell.

The top 100 retailer announced plans to exit the market as part of a broader effort to realign its footprint and focus on Top performing regions.

The company will close its four stores in Clarksville, Franklin, Madison and Murfreesboro, though it continues to operate more than 120 stores nationwide and remains optimistic about growth.

Chief Operating Officer Pat Sanderson called the move a strategic decision centered on long term priorities and invited Nashville customers to take advantage of limited time values.

Store closing sales are offering 20 to 40% off a wide range of furnishings and American Signature has brought in SB360 Capital Partners to manage the transition.

According to SB360 President Aaron Miller, the sale is a great opportunity for local shoppers to buy high quality pieces at substantial savings.

The exit reflects retailers ongoing evaluation of store portfolios amid changing market dynamics.

Finally, news from High Point highlights how companies are preserving beloved brands.

Bernards has reached an agreement with North Carolina based Knoll Furniture to keep its designs in the marketplace.

Null, a family owned business since the 1970s, announced in September that it would close and sell off its remaining inventory.

Bernards has taken ownership of Null's inventory and intellectual property.

While financial terms were not disclosed, the move means that Null's product line will continue to be available for retailers and consumers.

Because Null's showroom is in the same building as Bernard's, the two companies have long been acquaintances.

Bernard's president Micah Swick said he respected the family's reputation and their strong occasional line, so he moved quickly when he heard about the closure.

Bernard's plans to display most of Null's product line in its showroom next week and will take over orders beginning November 1st.

This arrangement not only preserves a familiar brand, but also expands Bernard's offering heading into the High Point market.

That's it for today's roundup.

As the industry navigates new regulations, shifting consumer behavior, trade uncertainties and strategic realignments, staying informed is more important than ever.

We'll continue to track these developments and what they mean for your business.

If you enjoyed this episode and want to keep up with all the latest furniture industry news, be sure to subscribe.

Thanks for listening and we'll see you next time.