Furniture & Home Furnishings Wholesalers NAICS 4232

Sep 26, 2025 - Wholesalers Prepare for Impact of New Furniture Tariff

• According to a report in Furniture Today, President Trump announced a new 30% tariff on upholstered furniture imports, effective October 1, citing national security and unfair trade practices. The move adds uncertainty, as it's unclear whether this tariff will be layered on top of existing duties. Additional tariffs were also introduced on kitchen cabinets, bathroom vanities, branded drugs, and heavy-duty trucks. Following the announcement, shares of major furniture retailers like Wayfair, Williams Sonoma, and RH declined. With the development, furniture wholesalers may face rising procurement costs and supply chain disruptions. Wholesalers reliant on imported upholstered goods will need to reassess sourcing strategies, pricing models, and inventory planning. The tariff could also shift demand toward domestically produced items, creating opportunities for US-based suppliers while pressuring margins for import-heavy operations. Strategic agility will be essential as wholesalers navigate evolving trade policies and prepare for shifts in retailer demand and consumer pricing sensitivity.
• The Wholesale Trade Industry is one of 12 industries reporting growth in August's Services ISM Report on Business. Executives in the Wholesale Trade industry reported increases in business activity, new orders, prices paid for materials and services, and inventories, along with slower supply deliveries and a decrease in order backlogs in August. Additional industries reporting growth during the period were Information; Arts, Entertainment & Recreation; Mining; Transportation & Warehousing; Educational Services; Professional, Scientific & Technical Services; Retail Trade; Utilities; Health Care & Social Assistance; Public Administration; and Real Estate, Rental & Leasing. Four industries reporting contraction during the period were Accommodation & Food Services; Management of Companies & Support Services; Other Services; and Construction. Overall, economic activity in the services sector grew in August for the third consecutive month, with the Services PMI registering 52%.

• Nearly two-thirds of furniture and home furnishings retailers fear that tariffs will disrupt business operations and are taking action to find ways to share tariff costs, according to new statistics revealed at a panel during the Las Vegas Market reported in Furniture Today. The panel also revealed that half of retailers don’t know what to tell customers about the tariff effects. Panelist Doug Cofiell, CEO of Ivystone Group, said vendors are raising prices or adding surcharges due to tariffs, which means new prices on already purchased merchandise that range from 5% to 15% higher. He added that seasonal vendors of Halloween and holiday merchandise are the hardest hit, estimating that only 70% of holiday orders will arrive on time. City Furniture owner Keith Koenig said he was able to negotiate with many factories overseas to share the financial burden of tariffs, with some partners absorbing nearly half of the costs.
• Furniture and home furnishings wholesalers may benefit from an expected 5% increase in dorm/apartment furnishings spending in 2025, reaching $12.8 billion, according to an annual back-to-college spending survey by the National Retail Federation and Prosper Insights and Analytics in Home Furnishings News. In addition to dorm or apartment furnishings, the other top back-to-campus spending categories were electronics, clothing and accessories, food, and personal care items. Total back-to-college spending is expected to reach $88.8 billion in 2025, up from $86.6 billion a year ago. While overall spending is on the rise, the per-person spending for back-to-college fell to an average of $1,325 from $1,364 in 2024, which can be attributed to higher-income households continuing to spend while lower-income households cut back across categories due to economic uncertainty. College-bound families are making budget-minded choices, such as buying used or refurbished items and using buy now or pay later services.