Welcome to Furniture Industry news.

Today is March 31, 2026.

Thanks for taking a few minutes to stay up to speed on what's happening across the furniture industry.

We're starting today with something that could shape the industry for years to come, and that's tariffs.

There's been a pretty major shift in how the US Government is approaching trade policy.

Earlier this month, new investigations were launched under what's called Section 301 of the Trade Act.

This these investigations target 16 economies, including China, Vietnam, Mexico and the European Union.

At the same time, there's a broader probe looking at about 60 countries tied to forced labor enforcement.

Now, the reason this matters is because the government's previous tariff authority was struck down by the Supreme Court.

That created a bit of a gap.

And what we're seeing now is an effort to rebuild that authority, but this time on stronger legal ground.

What's different here is the scope.

This isn't just about one country or one issue.

It's about building a long term durable tariff structure that can hold up over time.

Right now, the tariff picture is still a bit Messy.

There's a 10% tariff in place under one section of the law, a potential increase that hasn't been finalized yet, and a separate 25% tariff on furniture that's been pushed out to early 2027.

So what does this mean for the industry?

Honestly, no one has a clear answer on exact costs yet, but the direction is pretty clear.

Tariffs are becoming less of a short term disruption and more of a permanent part of the business environment.

For retailers and suppliers, that means preparation matters more than prediction.

Diversifying, sourcing, building flexibility into pricing, and really understanding your cost structure are going to be key moving forward.

And speaking of costs, that leads right into the next big story.

Pricing pressure across the supply chain.

Right now there's a lot of volatility in raw materials, and much of it is tied to rising oil prices and geopolitical tensions.

On average, raw material costs are up around 12%, and that's translating into potential finished goods increases of about 6 to 8% at the FOB level.

But those averages don't tell the whole story.

Some categories are seeing much bigger jumps.

Foam is up as much as 12%.

Paint adhesives and chemicals jumped up to 40% in some cases.

Hardware is up around 25 to 30%, wood is up 10 to 15%, and fabrics are climbing as well.

Even things like packaging materials and aluminum are seeing increases.

On top of that, labor costs in Vietnam, which is now the largest sourcing country, have gone up more than 10% when you factor in wages and benefits.

The challenge right now is that pricing isn't just going up, it's unpredictable.

Some manufacturers are holding off on accepting orders until they get a better handle on costs.

Others are issuing quotes that may only be valid for a few days.

There's a lot of uncertainty, and one thing you keep hearing from people in the industry is that this isn't a question of if prices will rise.

It's more about when and how much.

At the same time, the global sourcing landscape continues to shift, and Vietnam is really at the center of that story.

In 2025, Vietnam accounted for about 42% of U.S. furniture imports.

China, on the other hand, saw a significant drop when with its share falling to about 16% after a sharp decline in exports.

This shift has been happening for a few years now, largely driven by tariffs and broader trade tensions.

But even with that decline, China still plays an important role, especially in categories where it has strong production capacity and reliability.

Other countries are starting to gain ground as well.

Cambodia, for example, saw strong growth and moved up in the rankings of US Suppliers.

Malaysia and Thailand also posted modest increases, but there are some early signs of strain.

Vietnam's rapid growth is putting pressure on labor and infrastructure, which could impact costs down the line.

So while it's clearly the dominant player right now, it's not without its own challenges.

On the export side, things are a bit more stable, though still mixed.

Yamaha US furniture exports grew slightly in 2025, up about 1% to just over $2 billion.

Canada remains the largest market by far a accounting for about 60% of exports, even though it was down slightly.

Mexico showed strong growth, increasing imports by about 17%.

And several other countries, including the UK, Australia, Saudi Arabia and Japan, posted double digit gains.

When you look at product categories, wood bedroom furniture stood out with strong growth, while mattress exports declined pretty sharply.

So overall exports are holding steady, but growth is uneven and really depends on the market and the product.

Now, shifting over to the consumer side of things, the picture is a bit mixed.

Consumer confidence edged up slightly in March with a small increase in the overall index.

People are feeling a little better about current conditions, but when it comes to the future, there's still a lot of concern.

The expectations index remains below the level that typically signals a healthy outlook, and inflation is still top of mind.

Rising costs tied to tariffs and energy prices are weighing on consumers and and there's also growing concern about the job market.

So while consumers are still spending, there's definitely some caution there and that shows up in retail data as well.

According to recent numbers, overall retail sales are up about 2% so far this year.

But what's interesting is how consumers are spending.

Instead of cutting back completely, they're being more selective.

Growth is coming from what are being called lifestyle categories, things tied to personal interests, experiences and what makes people feel good.

That shift is important for furniture retailers.

It suggests that value isn't just about price anymore, it's also about how a product fits into someone's lifestyle or identity.

We're also seeing some interesting movement on the business side, particularly with Purple Innovation.

The company reported about 9% growth in the fourth quarter, driven mainly by its wholesale channel.

Partnerships with major retailers helped offset declines in E Commerce.

More importantly, Purple reached full year adjusted EBITDA profitability with which marks a pretty significant turnaround after a few challenging years.

Margins improved, expenses came down and the company is heading into 2026 with expectations for continued growth.

Still, the shift away from E Commerce and toward wholesale is something to watch as it reflects broader changes in how consumers are buying.

And while some companies are finding ways to adapt, others are reaching the end of the road.

A long standing family owned retailer in Washington is closing after nearly seven decades in business.

The decision comes as the current owners retire and there isn't a next generation ready to take over.

It's a reminder of how much the industry is changing and how difficult it can be for even well established businesses to transition over time.

At the same time, technology continues to reshape how products are sold.

At a recent retail event, new tools were introduced that allow shoppers to discover and buy products directly through social media platforms.

Features like shoppable videos and in app checkout are are designed to reduce friction and make it easier for consumers to move from discovery to purchase.

With more than half of shoppers saying that online creators influence what they buy, this is becoming an increasingly important channel for furniture retailers.

It opens up new opportunities, but also adds another layer of complexity to the sales process.

And finally, there's a growing focus on the role of designers, especially among higher income consumers.

These customers are highly engaged in the buying process and are often working on larger projects, sometimes spending well into six figures.

Many are also looking for financing options to spread out those costs.

That highlights the importance of the design trade as both an influencer and a sales driver, particularly in the higher end segment.

So when you step back and look at everything happening right now, there's a common theme.

The environment is uncertain, but it's not random.

Tariffs are becoming more structured, costs are rising, sourcing is shifting and and consumers are evolving in how and why they spend.

For anyone in the furniture industry, the focus right now really comes down to adaptability.

The businesses that can adjust, whether that's in sourcing pricing or how they connect with customers, are going to be in a much stronger position moving forward.

Thanks for listening to Furniture Industry News.

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