Trump’s tariff threat sends shockwaves through furniture stocks.
Wayfair (W) plunged over 7% on Monday, currently trading around $74. RH (RH), known for its luxury furniture, slid nearly 10% now at $233, while Williams-Sonoma (WSM) fell 3% to $200. By contrast, domestic-focused manufacturers like La-Z-Boy (LZB) and Ethan Allen Interiors (ETD) inched higher—up 0.1% and 0.4%, respectively—as investors bet they could benefit from a shift back toward U.S.-made products.
“This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,” Trump wrote on Truth Social.
Winners and Losers: Domestic Makers Gain, Importers Stumble
The divide in Monday’s market reaction was clear: companies with heavy reliance on imports sold off, while those with significant U.S. operations edged upward.
- Wayfair has been one of the sector’s most volatile stocks, logging more than 50 swings greater than 5% in the past year. Monday’s drop followed an earlier 5.3% decline last week tied to broader market weakness ahead of Federal Reserve Chair Jerome Powell’s speech. Despite the recent slump, Wayfair remains up more than 60% year-to-date, trading close to its 52-week high of $79.96.
- Williams-Sonoma, which owns U.S. manufacturing through Sutter Street in North Carolina and Mississippi, still relies heavily on imported goods. Its stock has risen about 6% in 2025, with long-term investors seeing strong gains—$1,000 invested five years ago would now be worth more than $4,100.
- RH, by far the hardest hit, has struggled all year. The stock is down over 41% in 2025, trading at $231.84—less than half its 52-week high of $454.52. The luxury retailer has shifted some production to Vietnam and North Carolina but still depends significantly on Asian sourcing.
Consumer Trends and Market Context
The tariff headlines land in an already fragile environment for furniture retailers. A sluggish housing market and cautious consumer spending have pressured the sector for more than two years. “The market is still flat to down low-single digits,” Wayfair CEO Niraj Shah said earlier this month. “I would describe the market not as having strength, but as sort of feeling like it’s bottomed out.”
Investors also remain wary of inflation pressures. A hotter-than-expected wholesale inflation report earlier this month reignited concerns that higher tariffs could eventually filter down to shoppers in the form of higher prices. With China and Vietnam serving as the top exporters of furniture into the U.S., new tariffs risk further straining household budgets.
Looking Ahead: Tariffs Could Redraw the Furniture Map
The Trump administration has already imposed tariffs on imports from China and Vietnam since April, with rates of 10% and 20% in place. Whether the new investigation leads to higher, additional tariffs remains uncertain. The Commerce Department is expected to complete its review within 50 days.
For now, the market has made one bet clear: companies with a domestic manufacturing advantage may weather the storm, while those heavily exposed to Asian imports could face deeper pain if tariffs escalate.
The tariff headlines land in an already fragile environment for furniture retailers. A sluggish housing market and cautious consumer spending have pressured the sector for more than two years. “The market is still flat to down low-single digits,” Wayfair CEO Niraj Shah said earlier this month. “I would describe the market not as having strength, but as sort of feeling like it’s bottomed out.”
Investors also remain wary of inflation pressures. A hotter-than-expected wholesale inflation report earlier this month reignited concerns that higher tariffs could eventually filter down to shoppers in the form of higher prices. With China and Vietnam serving as the top exporters of furniture into the U.S., new tariffs risk further straining household budgets.
Looking Ahead: Tariffs Could Redraw the Furniture Map
The Trump administration has already imposed tariffs on imports from China and Vietnam since April, with rates of 10% and 20% in place. Whether the new investigation leads to higher, additional tariffs remains uncertain. The Commerce Department is expected to complete its review within 50 days.
For now, the market has made one bet clear: companies with a domestic manufacturing advantage may weather the storm, while those heavily exposed to Asian imports could face deeper pain if tariffs escalate.
Conclusion
Furniture stocks have entered a new phase of volatility as the White House turns its attention back to trade policy. Wayfair, RH, and Williams-Sonoma have been punished by investors, while La-Z-Boy and Ethan Allen have emerged as potential beneficiaries. With tariffs still undefined, the next 50 days could be pivotal—not just for investors, but for the broader U.S. furniture market.
Furniture stocks have entered a new phase of volatility as the White House turns its attention back to trade policy. Wayfair, RH, and Williams-Sonoma have been punished by investors, while La-Z-Boy and Ethan Allen have emerged as potential beneficiaries. With tariffs still undefined, the next 50 days could be pivotal—not just for investors, but for the broader U.S. furniture market.
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