Hello and welcome back to Furniture Industry News.

Today is October 1, 2025, and as always, we're here to catch you up on the stories shaping the furniture industry.

Right now.

We'll cover tariffs, consumer confidence, the state of the economy, online shopping habits, transportation changes, financial shakeups, a big office furniture merger, and even the closure of a long standing family retailer.

Let's dive right in.

We start today with tariffs, which continue to be a pressing issue for our industry.

The American Home Furnishings alliance has informed its members that the new Section 232 tariffs announced by the White House will stack on top of existing duties on Chinese imports.

That means costs could climb to unprecedented levels for some furniture categories.

According to AHFA trade attorney Maury Grimson, the administration decided not to stack the new tariffs on reciprocal duties affecting places like Brazil, India, Canada and Mexico.

But for China, the story is very different.

Here's what that looks like in practice.

The new Section 232 tariffs will stack on top of China's existing 20% IEEPA tariff and the 7.5% to 25% Section 31 tariffs already in place.

So for upholstered seating from China, sofas, chairs and sectionals, the effective duty rate could soar well above the 25% to 30% headline figure that was announced last week.

The categories specifically called out include HTS US codes for upholstered seating, with tariffs starting at 25% on October 14th of this year and rising to 30% on January 1st, 2026.

Kitchen cabinets, vanities and related parts are also on the list, starting at 25% and doubling to 50% at the start of the new year.

The White House framed these moves as a national security issue, saying that reliance on imported wood products weakens the US Economy and threatens domestic production and supply chains.

But while China faces the steepest burden, not all countries are treated equally.

Imports from the United Kingdom, the European Union and Japan will be subject to capped rates of 10% to 15% under existing trade agreements.

Other trading partners may even be able to negotiate alternatives if they address what the administration sees as risks tied to wood imports.

Still, a lot of uncertainty remains.

The AHFA has pointed out that upholstered seating is not always easy to define.

Modular pieces, mixed material products and imported parts could all fall into gray areas depending on how customs interprets the rules.

Another sticking point is how country of origin will be determined, especially in cases where transshipment practices come into play.

These unanswered questions mean that the real world impact could end up being broader or narrower than what's currently on paper.

For now, the AHFA is urging members to prepare.

That means reviewing import portfolios to identify which products are affected, checking sourcing origins to see if shifts to exempted markets make sense, and budgeting for significant cost increases ahead of the Oct. 14 implementation date.

The group is also monitoring for possible exclusion processes that might provide relief down the road.

But they caution that unpredictability itself may be the biggest challenge.

In short, the tariffs themselves are tough enough.

But the murkiness around how they'll be applied could slow down investment decisions across the supply chain.

And speaking of slowdowns, consumer confidence has taken another hit, dropping to its lowest level since April.

When people don't feel good about the economy, they tend to pull back on big purchases like furniture.

And it's not just a blip.

The trend has been downward for several months.

Inflation, interest rates and uncertainty about jobs are all playing a role.

For those of us in the industry, this signals a cautious holiday season ahead.

Customers may still shop, but they'll be choosier.

They'll hunt harder for value, and financing options may become even more important to close the sale.

Adding another layer to that uncertainty are insights from Deloitte's recent CFO survey.

Chief financial officers across industries are split on how they feel about the economy.

Some are optimistic that conditions are stabilizing, but just as many are bracing for further turbulence.

For furniture professionals, this reflects what we're feeling on the ground.

One week sales look promising.

The next week, they're soft.

Businesses in every sector are hedging their bets, and that trickles down to us in the form of unpredictable consumer demand.

Now, while customers may be hesitant about spending, one trend is continuing to grow the use of artificial intelligence in online shopping.

A new report shows that shoppers are turning to AI tools more often when they browse online.

They're asking AI to suggest room layouts, generate style inspiration, or even find the best deals.

For the furniture industry, this is both an opportunity and a challenge.

On one hand, retailers who lean into AI powered tools can create stickier experiences that keep customers engaged.

On the other hand, if customers are relying on third party AI platforms, retailers risk losing control of the customer journey.

It's a reminder that tech adoption isn't slowing down, and and ignoring it means falling behind.

Speaking of challenges, there's a major regulatory change coming in transportation that could reshape how furniture gets delivered.

A new federal rule is set to impact trucking, and industry experts say it could significantly increase costs and reduce flexibility in the supply chain.

While details are still being ironed out.

The gist is that new compliance requirements are going to make it harder for smaller carriers to operate profitably.

And since the furniture industry depends so heavily on trucking, whether for long haul deliveries from manufacturers or last mile service to customers homes, this is one to watch closely.

If transportation costs rise, expect that to ripple into pricing and delivery timelines for everyone in the industry.

Turning to company specific news, let's talk about At Home.

The big box home decor retailer has been working through a financial restructuring and it looks like the process is setting the stage for a change in ownership.

While details are still developing, the restructuring is designed to reduce debt and give At Home more stability moving forward.

For suppliers and industry partners, the key takeaway is that At Home intends to keep operating, but we may see shifts in strategy or leadership once the ownership transfer is complete.

As always, when a major retailer restructures, it raises questions about vendor agreements, merchandising priorities and and how aggressively the company will compete for market share.

Another notable company story is unfolding in the office furniture sector.

Steelcase is showing signs of a rebound, partly thanks to its merger with HNI that's expected to close soon.

The combined scale of those two giants could reshape the competitive landscape in office furnishings.

At the same time, though, tariffs are still biting into their costs, showing once again how global trade policy has a very direct impact on our industry.

Steelcase's recovery is good news for the sector overall, since the return to office trend has been bumpy and office furniture demand has been inconsistent.

If Steelcase and HNI can create efficiencies and bring more stability, that could send positive ripples through the broader supply chain.

On the more local side of the industry, there's news out of Maryland that highlights the personal side of the furniture business.

After 78 years in operation, a family owned retailer is closing its doors.

The decision wasn't made lightly, but rising costs, competitive pressures and the challenges of running a multigenerational business ultimately led to the closure.

For many of us in the industry, these stories hit home.

They remind us how tough this business can be and how quickly market changes can upend even the most established stores.

At the same time, they underline the resilience and heart that family retailers bring to their communities.

Every time a store like this closes, it leaves a gap that's hard to fill.

So pulling all of this together, what we're seeing right now is a furniture industry facing pressure from nearly every angle.

Tariffs raising costs, consumers pulling back, transportation rules tightening supply chains and major retailers restructuring or merging to stay competitive.

And yet, there are bright spots.

AI is opening new ways to engage customers, and some companies like Steelcase or, are proving that rebounds are possible even in tough conditions.

For furniture professionals, the message is flexibility and adaptability are more important than ever.

Whether you're running a single location store or managing a multinational supply chain, the key to navigating the months ahead will be staying informed and ready to adjust as conditions shift.

That's going to wrap up today's rundown of the biggest stories in the industry.

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