Including textiles, ceramics, glass products, leather products, wood products, wool and carpets related to the home industry, tariff escalation will have a direct impact on US home furniture manufacturers.
American companies have always relied heavily on Chinese imports. As early as last year, when the US proposed to impose tariffs, American home furnishing companies expressed concern about the supply chain, demand and even the survival of enterprises.
Jeff Seaman, CEO of American furniture retailer Room To Go, once said, “When tariffs reach 25%, this will be a dramatic change, even adversely affecting the supply chain. There are not enough products outside China. There may be a shortage of products, or the price will increase over time."
The decision of the US government to upgrade tariff measures will even cause some American furniture manufacturers to face bankruptcy.
The trade war with China intensified late Friday as President Trump ordered 25% tariffs be placed on a remaining $300 billion in Chinese goods shipped to the United States. This is above the $200 billion in goods that were hit with an 15% in tariffs that went into effect early Friday, raising the rate from 10% to 25%.
The additional $300 billion in goods would include chenille fabrics, which previously had not been affected by the tariffs.
“Earlier today, at the direction of the President, the United States increased the level of tariffs from 10% to 25% on approximately $200 billion worth of Chinese imports,” said U.S. Trade Representative Robert Lighthizer in a statement on Friday. “The President also ordered us to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.”
China on Monday also reportedly said it would retaliate by raising tariffs from 10% to 25% on an estimated $60 billion in goods shipped from the U.S. to China effective June 1.