Wayfair store in Wilmette, Illinois.
Provided by: Wayfair
Wayfair, 1 day
President Trump on Wednesday announced a one-year suspension of tax increases on upholstered furniture, as well as kitchen cabinets and vanities. Instead, tariffs on upholstered furniture will remain at 25%, the level set by President Trump in September.
Before President Trump’s 11th-hour reversal, tariffs on this type of furniture were scheduled to increase by 30% in early 2026. He cited ongoing trade negotiations as the reason for postponing the tariff hike.
Trump called the tariffs an “overwhelming benefit” for the United States and said in a social media post Friday morning that losing the United States’ ability to impose tariffs on other countries would be a “terrible blow.” His comments came as the White House awaits a Supreme Court ruling on the legality of many of Trump’s new levies.
Furniture suppliers have come under scrutiny on Wall Street as President Trump’s focus on broad and expensive tariffs on imported goods has heightened concerns about rising costs. But stocks in the sector have played out very differently as investors gauge how changes in trade policy and other variables will affect each business.
Wayfair soared more than 125% in 2025 as the value-focused retailer gained traction among consumers. Meanwhile, West Elm and Pottery Barn parent company Williams-Sonoma fell more than 3% last year. RH — whose chief executive drew attention in April by live-streaming the stock’s soaring stock price — ended the year down more than 50%.
“Oh my gosh,” RH CEO Gary Friedman said during the California-based company’s April earnings call.
“I think it took a hit when the tariffs came out,” Friedman added. “In our 10-K, everyone can see where we’re sourcing from, so it’s not a secret. And we’re not trying to hide everything in an Asian bucket.”
