Home furnishings retailers saw a significant jump in their stock prices on Friday after President Trump revealed a one-year delay on increased tariffs for upholstered furniture, kitchen cabinets, and vanities.
Luxury retailer RH experienced a 9.5% rise, while online marketplace Wayfair climbed 6.3%.
Meanwhile, Williams-Sonoma, which specializes in kitchenware and home decor, gained 5.3% as well.
Other furniture retailers like Ethan Allen and La-Z-Boy also benefited, increasing by 1% and 0.4%, respectively.
A fact sheet released by the White House towards the end of Wednesday indicated that tariffs on these items will stay at the original 25% established by Trump in September, instead of the planned increases to 30% and 50% that were set to take effect on New Year’s Day.
Concerns had arisen among economists about potential price hikes for consumers, especially since furniture typically influences costs significantly and is a major purchase for many households.
According to the Consumer Price Index, furniture and bedding prices rose by 3% year-on-year in November.
The White House noted that ongoing negotiations with trade partners aim to address issues related to trade reciprocity and the national security aspect concerning wood product imports.
Though the increases in tariffs have been delayed until January 1, 2027, the administration clarified that this doesn’t mean a retreat from its tariff stance as trade discussions are still underway.
A Supreme Court ruling is anticipated regarding substantial tariffs from the International Emergency Economic Powers Act. Should the court determine that Trump exceeded his authority, the government might be required to refund up to $168 billion to affected companies, according to recent analysis cited by CBS News.
President Trump commented that tariffs serve as a crucial benefit to the nation, bolstering security and prosperity. He expressed concern that losing the power to impose tariffs would negatively impact the U.S.
In response to potential setbacks, Trump is reportedly considering new tariffs under the Alternative Trade Act should the Supreme Court overturn current policies.
The administration maintains that tariffs are vital national security measures intended to protect U.S. industries, despite the rising affordability issues that voters are worried about as the 2026 midterms approach.
Last year’s performance in the furniture sector was somewhat varied. Wayfair saw its stock rise by over 125% in 2025 as consumers sought out value and discounts.
In contrast, RH’s stock fell more than 50%, with its CEO making headlines for candidly declaring, “It’s a disaster,” during an earnings call when their stock price dropped.
Friedman reflected that the tariffs likely contributed to the downturn, acknowledging the transparency in their sourcing practices.
Williams-Sonoma, which owns popular brands like West Elm and Pottery Barn, has also seen a decline of over 3% in the past year.
