Reupholstery and Furniture Repair NAICS 811420

Mar 26, 2025 - Materials Costs May Fluctuate with Tariffs

• A range of new tariffs on imported goods from China, Mexico, and Canada may affect the cost and availability of materials used by reupholstery and furniture repair companies, including fabrics, leather, and wood. The Trump administration has enacted a 20% tariff on imports from China, a 25% tariff on imported steel and aluminum, and 25% tariffs on imports from Canada and Mexico, paused until April. According to the Home Furnishings Association, as much as 50% of raw materials used in furniture making, such as wood, fabrics, hinges, and screws, are imported. Increases in materials costs must be absorbed by the company or passed along to customers. Companies may face supply chain disruptions, which could create delays and added costs. Fabric supplier Regal Fabrics told Furniture Today that the company has been diversifying its supply chain for many years and will work to minimize the impacts of tariffs on customers.
• According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer confidence fell in March 2025. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”

• Furniture repair firms may be benefiting from a leveling of lumber prices. US producer prices for hardwood lumber were up 1.6% in December 2024 year over year unadjusted and were flat month-over-month seasonally adjusted, according to the US Bureau of Labor Statistics. Of the last five months on a month-over-month basis, US producer prices for hardwood lumber have fallen slightly for three months and been flat for two months.
• According to a new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals, furniture costs are expected to increase. The study looked at the effect of tariffs on prices of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. Trump has proposed a universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the NRF study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.8 billion to $14.2 billion more for toys, $8.5 billion to $3.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”