Welcome to Furniture Industry News for Friday, July 11, 2025.

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

Today, we're covering some major developments affecting our industry, from trade tensions and shipping costs to company closures and growth strategies.

Let's dive into what's happening in the furniture world.

The big story dominating headlines is the escalating trade tensions between the United States and several key trading partners.

President Trump has announced some significant tariff threats that could have major impacts on our industry.

Just yesterday, he threatened to impose a 35% tariff on Canadian imports starting Aug. 1 unless Canada makes what he calls unspecified concessions.

This follows similar warnings sent to other trading partners this week.

The letter to Canadian Prime Minister Mark Carney accused Canada of financial retaliation through its own tariffs and criticized efforts to halt drug shipments across the border.

What makes this particularly concerning for furniture professionals is that these tariffs could override protections under the United States Mexico Canada Trade Agreement, which currently exempts many key goods from levies.

If enacted broadly, these tariffs could significantly impact furniture imports from Canada and disrupt established supply chains that many companies rely on.

But Canada isn't the only country facing new tariff threats.

Trump has also announced a 50% tariff on all goods imported from Brazil, also starting Aug. 1.

While Brazil might not be a major furniture supplier for most companies, this shows the broader pattern of trade tensions that are creating uncertainty across all import categories.

The letter cited several reasons, including what Trump called unfair legal proceedings and censorship orders against US Social media platforms.

These tariff announcements are happening at a time when container shipping rates are actually declining.

According to the latest data, global container Shipping rates fell 5% this week, marking four straight weeks of declines.

Spot rates from Shanghai to Los Angeles dropped 8%, while rates to New York fell 5%.

Analysts say this decline is due to weak demand following a temporary surge in imports after earlier tariff suspensions.

While lower shipping costs might seem like good news, the uncertainty around future tariffs is making it difficult for companies to plan their import strategies.

Speaking of industry challenges, we're seeing some difficult news from established furniture manufacturers.

Howard Miller, the family owned clock and furniture maker with nearly 100 years of history, announced it will close its operations by early next year.

This decision will affect about 195 jobs across facilities in Michigan and North Carolina.

The company cited a struggling housing market, rising inflation and interest rates, along with tariffs that disrupted supply chains and increased costs as the main factors driving this decision.

Howard Miller's story is particularly telling because it shows how multiple pressures are hitting furniture manufacturers at once.

The company worked with an investment banker to find a buyer but couldn't secure one.

Production will continue through the fourth quarter of 2025, with the business staying open into 2026 to sell off remaining inventory.

This closure affects not just Howard Miller but also Heckman Furniture Co.

Which Howard Miller acquired in 1983.

However, not all furniture manufacturers are struggling.

Basset Furniture showed that companies can succeed even in challenging times by focusing on cost cutting and on operational efficiency.

Bassett reported modest revenue growth and return to profitability in its second quarter.

The company posted consolidated sales of 84.3 million shares, up 1.1% from the same period last year.

More importantly, they turned an operating loss of $8.5 million from last year into into an operating income of 2.5 million this quarter.

Bassett's success comes from strategic restructuring and cost containment measures they implemented in 2024.

Their wholesale sales rose 3.1% while retail sales climbed 7.5%.

The company's CEO, Rob Spillman Jr highlighted that their US manufacturing base positions them well to serve both wholesale and retail markets, especially as trade uncertainties continue to affect import costs.

The retail landscape is also facing headwinds.

According to the National Retail Federation, retail sales slowed across nearly all sectors in June, marking the first monthly decline since February.

This slowdown is happening amid what the NRF calls prolonged uncertainty surrounding the economy, tariffs and trade policy.

Core retail sales fell 0.32% month over month in June, and furniture and home furnishing stores were hit particularly hard, dropping 1.04% month over month and 1.14% year over year.

The NRF's analysis suggests that consumers are adopting a wait and see approach with their household budgets due to economic uncertainty.

While people still have the ability to spend on priorities, the ongoing trade policy uncertainty is affecting consumer confidence and purchasing decisions.

This cautious consumer behavior is something furniture retailers need to factor into their planning.

In the face of these challenges, some companies are finding success by focusing intensely on customer experience.

Dutchcrafters, the Amish furniture retailer, conducted a study showing how customer centric approaches can drive growth even in difficult times.

The company achieved a net promoter score of 80 in 2024, which exceeds industry benchmarks.

Their success comes from hiring dedicated customer care representatives to manage each order from production to delivery, creating specialized employee working groups to monitor large orders and limit errors, and opening physical showrooms to provide in person shopping experiences.

Dutch crafters recognize that their specialization in made to order Amish furniture presented unique challenges, including limited technology use by Amish builders and inherent delays in custom craftsmanship.

By addressing these challenges head on.

With better communication and specialized delivery services, they've been able to maintain high customer satisfaction while growing their business.

The importance of data management is becoming increasingly clear as companies navigate these uncertain times.

Retailers are finding that smart data strategies help them stay agile and make better decisions in real time.

This includes using data for cost optimization, understanding what drives performance, and connecting customer preferences with supplier capabilities.

Companies that can effectively use data to spot market shifts early and respond quickly are better positioned to weather ongoing trade uncertainty.

Looking at the broader housing market, there are some bright spots for furniture demand.

A recent survey identified the fastest growing metro areas for new home construction, which directly impacts furniture sales.

Since furniture purchases typically follow moves into new homes.

The Lafayette area of Indiana topped the list with 630 new building permits issued per 100,000 people in the first two months of the year.

Other hotspots included Carson City, Nevada, Sherman Denison, Texas and several Florida markets including Cape Coral, Fort Myers and Ocala.

These construction hotspots represent opportunities for furniture retailers to focus their marketing efforts and inventory planning.

While the overall housing market faces challenges from high interest rates and economic uncertainty, these specific metro areas are showing strong growth that could translate into furniture demand.

The current environment requires furniture industry professionals to be more strategic and agile than ever.

Companies need to balance the immediate challenges of tariff uncertainty, supply chain disruptions, and cautious consumer spending with longer term planning for growth opportunities.

Those that can effectively manage costs, focus on customer experience, and use data to make smarter decisions are more likely to succeed.

The trade tensions we're seeing aren't likely to resolve quickly, so furniture professionals need to prepare for continued uncertainty around import costs and supply chain reliability.

At the same time, companies that have strong US Manufacturing capabilities, like Bassett, may find themselves at a competitive advantage.

That's your Furniture Industry news update for July 11, 2025.

These are challenging times, but they're also creating opportunities for companies that can adapt and respond effectively to changing conditions.

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