Welcome to Furniture Industry News for Wednesday, July 9, 2025.

I'm here to bring you the latest developments that matter most to furniture professionals.

Today we're covering some major changes in tariff policy, how the industry is responding to ongoing trade uncertainty, and several key business updates that could impact your operations.

Let's start with the biggest story affecting our industry right now.

President Trump has announced a new set of tariffs that will significantly impact furniture imports.

These new tariffs replace the existing 10% universal tariff and will take effect on Aug. 1, giving companies about three more weeks to prepare.

The rates vary dramatically by country.

Myanmar and laos will face 40% tariffs.

South Africa gets hit with 30%, while South Korea, Japan, Kazakhstan and Malaysia will each see 25% tariffs.

What makes this particularly challenging is that these tariffs will be added on top of existing sector specific levies for things like steel and aluminum.

The administration has also warned that letters are going out to nearly 100 countries telling them that without trade deal progress, tariffs will return to the original April levels.

Treasury Secretary Scott Besant described this as tariffs that will boomerang back if agreements aren't reached.

Adding to the complexity, Trump has threatened an additional 10% tariff on any country that aligns with BRICS trade policies, though exactly what that means isn't clear yet.

For furniture companies, this tariff uncertainty is already showing up in the numbers.

According to the latest Smith Leonard report, new furniture orders dropped 9% in April compared to the same month last year.

Orders also fell 7% from March alone, bringing the year to date decline to 4%.

Some industry segments may already be in what Smith Leonard calls a mini recession.

The furniture industry is typically one of the first to feel economic impacts smart, so these numbers are worth paying attention to.

The challenges aren't just coming from tariffs.

Consumer confidence fell in June, dropping to 93 points from 98.4 in May.

The expectations index, which measures how consumers feel about the next six months, fell to 69 points.

Anything below 80 usually signals a recession might be coming.

Consumers are less positive about current business conditions and job availability, which directly affects furniture purchasing decisions.

Despite these headwinds, there are some positive signals.

Furniture store sales rose 8.8% in May compared to May 2024, reaching $11.8 billion.

Sales also increased 1.2% from April to May.

The housing market is showing mixed signals but remains a key driver for furniture demand.

Existing home sales rose slightly in May, while pending home sales increased 1.8%, according to the national association of Realtors.

The impact of tariff uncertainty is showing up in import patterns, too.

Import Cargo volumes at major U.S. ports dropped 11.8% in May and are expected to rebound in July as retailers stock up for the holiday season.

However, once the new tariffs kick in, imports are forecast to fall again dramatically.

August imports are projected to drop 10.4% year over year.

September could see a 19.9% decline and and October might drop 19.2%.

These numbers reflect both the tariff impact and companies rushing to bring in merchandise before the new rates take effect.

Industry leaders are speaking out about what these tariff changes mean for pricing.

Gabriele Natale, president of manwa, said that retail price increases are inevitable in response to tariffs.

He pointed out that consumers already have limited disposable income and higher prices will squeeze the market further, making it harder for customers to justify purchases.

This is a reality check for anyone thinking tariffs won't affect end consumers.

The stock market is reflecting these concerns.

When the latest tariff news broke, the Dow Jones dropped over 422 points.

Only five out of 29 home furnishing stocks managed to post gains that day.

Bassett Furniture led the winners with a 5.71% increase, followed by Culp at 1.11%, Manwa at 0.46%, Sleep Number at 0.39% and Walmart at 0.62%.

Most other furniture related stocks fell, with Williams Sonoma taking the biggest hit at a 6.62% decline.

Speaking of challenges, American Mattress filed for Chapter 11 bankruptcy protection for its 52 stores in Illinois and Indiana.

The company cited three main a challenging business environment, election year uncertainty and costly line changeovers from two major mattress suppliers.

The retailer had to spend an estimated $3 million to buy new product samples and outfit all stores when suppliers re merchandise their lines.

This shows how supplier changes can create unexpected financial strain, especially when combined with other market pressures.

The bankruptcy filing highlights how some furniture market segments are struggling more than others.

While American Mattress generated about $38 million in revenue in 2023 and 2024, this was down from $50 million in previous years.

The company described facing a perfect storm over the past 18 months, including consumer uncertainty around tariffs and their impact on confidence.

On a more positive note, mall traffic data shows some interesting trends.

While shopping center visits dipped slightly in June, the first half of 2025 showed mostly positive traffic growth.

Indoor malls performed best, with visits up 1.8% for the first six months.

Open air shopping centers saw 0.6% growth, while outlet malls remained relatively flat.

What's encouraging is that average visit duration increased across all mall formats, suggesting better consumer engagement when people do visit this mall.

Traffic data is particularly relevant for furniture showrooms and retailers with physical locations.

The increase in dwell time could indicate that consumers are being more deliberate about their shopping decisions, which fits with the higher ticket nature of furniture purchases.

Looking at Innovation in the Industry lovesac continues to differentiate itself with its modular approach.

CEO Sean Nelson recently discussed how the company treats its showrooms more like websites than traditional stores.

Everything is shipped via FedEx directly to customers, and the showrooms exist primarily to let customers experience the product firsthand.

This model is particularly interesting given the supply chain challenges many furniture companies face.

Lovesac is also developing a resale program, taking returned products, inspecting and grading them, then reselling to new customers who are happy to buy pre opened items.

This sustainability focused approach could become more important as consumers become more environmentally conscious and as companies look for ways to manage costs in a challenging market.

The company manufactures in multiple Southeast Asian countries, including Malaysia, Vietnam, China and Indonesia, which gives them flexibility as tariff policies change.

This geographic diversification is becoming increasingly important for furniture companies trying to navigate trade uncertainty as we look ahead, the key themes for furniture professionals are clear tariff uncertainty will continue to impact pricing and sourcing decisions, consumer confidence remains fragile, and companies need to be more flexible and innovative in their approaches.

The industry has weathered similar challenges before, but the current combination of trade tensions, economic uncertainty and changing consumer behavior requires careful planning and strategic thinking.

That's your update for today.

Stay tuned for more developments as this tariff situation continues to evolve.

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