The Middle Is Getting Crushed
Flexsteel's margin jump came mostly from tariff refunds, and Broyhill was back on the market through licensees aimed at mainstream shoppers.
29 stories
Flexsteel's margin jump came mostly from tariff refunds, and Broyhill was back on the market through licensees aimed at mainstream shoppers.
New Section 301 tariffs on 60 economies took effect July 24, 2026. The posted rate was only the start of what a furniture importer actually owed.
In one week of June 2026, Washington proposed new tariffs on 60 economies, ordered tougher customs enforcement and opened a new trade probe into Vietnam.
Tariff refunds started reaching importers in May 2026 while shoppers got pickier about when and where they spend.
New Section 301 investigations covered most major furniture sources, confidence inched up and Purple grew through wholesale.
The Supreme Court struck down the emergency tariffs, a temporary 10% surcharge took their place and importers had to fight for refunds of what they had paid.
A trade court judge told Customs to start refunding the struck-down tariffs. Meanwhile a New Mexico furniture retailer filed for Chapter 11 and an outdoor furniture maker shut down.
Commerce opened inquiries into whether mattress imports were dodging duties, Leggett & Platt's sales fell and pending home sales dropped in December.
Tariffs threatened on several European countries were called off at Davos, and design and construction pros entered 2026 with a measured outlook.
The President announced a furniture tariff investigation with a 50-day clock, while existing-home sales posted their first yearly gain since early 2025.
China's tariff truce was extended to November, India faced an added 25% duty from late August, and furniture prices posted a big monthly jump.
NRF expected imports to fall for the year as new tariffs took effect, Brazil faced 50% duties, new home sales stayed weak and earnings split by company.
New country-by-country tariff rates were set for August 7, pending home sales slipped, and Havertys and Ethan Allen reported mixed quarters.
HNI posted strong second-quarter growth while existing-home sales fell and prices hit a record, and new tariff rates loomed for August.
A Vietnam trade deal promised a 20% rate, and a survey found 44% of small business owners reporting tariff-related revenue drops.
Dorel said it would stop all Dorel Home manufacturing in North America, as the 90-day pause on higher China tariffs headed toward its August deadline.
A trade court struck down the IEEPA tariffs, an appeals court put that ruling on hold a day later, and pending home sales fell sharply in April.
The President proposed a 50% tariff on EU goods from June 1, and Williams-Sonoma reported comparable brand revenue up 3.4% for its first quarter.
The May 2025 Geneva deal cut US tariffs on Chinese goods for 90 days, giving furniture importers a short window to restock and rethink.
The U.S. and U.K. struck a trade deal, Somnigroup's first quarter included Mattress Firm, Arhaus grew revenue and QVC Group's sales fell 10%.
The higher country tariffs were paused for 90 days except for China, which went to 125%, and NRF forecast imports falling at least 20% in the second half.
The April 2 tariff annex set rates of 46% for Vietnam and 49% for Cambodia, and RH said it had been operating in the worst housing market in decades.
An April 2 order set a 10% tariff on nearly all imports with higher rates for dozens of countries, ended de minimis for China, and Bassett returned to profit.
ISM said furniture makers were contracting, while Steelcase orders rose 9% and MillerKnoll orders rose 2.7% as office furniture showed signs of recovery.
A Section 232 probe named furniture as a lumber derivative, Wayfair priced $700 million of 7.750% notes, and Dorel's quarterly revenue fell 6.8%.
Tempur Sealy completed its purchase of Mattress Firm, a 10% tariff on Chinese goods took effect, and Canada tariffs were paused until March 4.
In the first days of February 2025, the Mexico tariffs were paused, Canada answered with tariffs that cover furniture, and a judge cleared the way for Tempur Sealy to buy Mattress Firm.
A trade memo set an April 1 deadline for reviews, tariff orders were days away, Dorel closed its Montreal plant, and Bassett returned to an operating profit.
The President-elect promised 25% tariffs on Canada and Mexico and an extra 10% on China, while ISM said furniture makers were contracting in November.