Williams-Sonoma and Other Furniture Stocks Fall on Threat of More Tariffs

President Trump said he would impose “substantial tariffs on any Country that does not make its furniture in the United States.” (Justin Sullivan/Getty Images)

Key Points

• Furniture stocks declined after President Trump said he would impose new tariffs on imported furniture to boost U.S. production.
• Companies heavily reliant on imports, like Williams-Sonoma and RH, saw shares fall by 4.3% and 4.8% respectively.
• Last week, a 50% tariff on kitchen cabinets and a 30% tariff on upholstered furniture were announced, effective October 1.

Furniture stocks were falling Monday morning after President Donald Trump said he would impose a new round of tariffs on imported furniture.

“In order to make North Carolina, which has completely lost its furniture business to China, and other Countries, GREAT again, I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States,” the president wrote in a Truth Social post Monday morning. More details will follow, he added.

A White House spokesman didn’t immediately provide more context about the policy nor clarify how it would be implemented.

Although details on policy implementation remained vague, investors were pulling back from furniture stocks—particularly those that import a large portion of their products. Williams-Sonoma shares were down 4.3% in early morning trading, RH was off 4.8%, and Arhaus dipped 2.3%.

Shares of furniture companies with larger U.S. production or exposure to U.S.-based vendors were faring slightly better. La-Z-Boy was down 1.8%, Ethan Allen Interiors ticked 0.2% lower, and Wayfair was flat.

Representatives for these companies didn’t immediately respond to a request for comment from Barron’s on how they planned to react to Monday’s announcement.

Trump has been interested in tariffs for the furniture industry for several weeks now.

In late August, he said he was launching an investigation into setting new tariffs on furniture imports, aimed at bringing production back stateside. Many U.S. firms currently source from countries such as China and Vietnam, which are some of the world’s biggest furniture manufacturers.

The administration has yet to release the results of that investigation, but the president is already moving to impose new levies on the industry. Last week, he announced a 50% tariff on all kitchen cabinets, bathroom vanities, and “associated products” starting Oct. 1, as well as a 30% tariff on upholstered furniture.

Details on how the tariffs will play out remain “very limited,” wrote Bradley Thomas, an analyst at KeyBanc Capital Markets after last week’s announcement. However, he expects that companies that assemble some of their products or components in the U.S. may be subject to a tariff exclusion.

Write to Sabrina Escobar at sabrina.escobar@barrons.com