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Furniture manufacturing in the US is under strain from international trade and tariff regulations.

Trade tensions are increasingly impacting American furniture manufacturers.

While more than half of home furniture sold in the U.S. is domestically made, many companies still depend heavily on overseas partners, particularly in Asia. This dependence is causing significant stress, even for U.S.-based manufacturers with local production facilities.

For instance, a North Carolina upholstery fabric supplier, which caters to clients like Arhaus and Restoration Hardware, has about 80% domestic production. However, President Blake Millinor noted that they still source thread components from 17 different countries.

“We’re using imported components that often pass through customs from places like India or Turkey,” Millinor explained.

Tariffs on inexpensive online goods from China have been addressed under Trump’s administration

Under former President Trump, tariffs on Chinese imports have seen a steep rise, leading to a notable increase in fabric prices—anywhere from 20% to 50%, according to Millinor.

Despite the ongoing push to revive local manufacturing, the reality complicates matters. By 2023, the U.S. International Trade Commission found that only 52% of consumer furniture purchases were made in the United States. China remains the largest importer with $12.6 billion, closely trailed by Vietnam at $12 billion.

The Global Necessity for American-Made Furniture

At Vaughan-Bassett, a well-established bed manufacturer in Virginia and North Carolina, most wooden furniture utilizes raw materials sourced within a 250-300 mile radius. CEO Wyatt Bassett acknowledges that hardware, finishes, and packaging still come from abroad.

“We’re a bit selective with metal imports, but about 5% still comes from Asia, predominantly China,” he mentioned.

Walmart’s initiative supports small to medium-sized businesses and promotes American-made products

Century Furniture, which is part of the Rockhouse Farm family, also manufactures entirely in the U.S., yet depends on foreign suppliers for specialized materials like acrylics and metals, a situation CEO Alex Shuford points out isn’t ideal but necessary due to availability.

“China has been the go-to for acrylic until we can find alternatives,” he added.

To counteract new tariffs on imported components, Century has begun implementing product surcharges. For example, a table design includes a Chinese acrylic base, a Vietnamese metal collar, and a U.S.-made wooden top, driving prices up due to the cost of the Chinese part.

The Political Focus and Future Direction

Trump has highlighted North Carolina’s historical significance in furniture manufacturing, claiming the industry was “swept away” due to offshoring but could see a resurgence.

“There are thousands of businesses planning to return to the U.S. and North Carolina,” Trump stated. “The furniture people are already coming back.”

Millinor acknowledges the ambition for growth but remains mindful of the realities faced by the industry.

“We’ve got the capacity to ramp up production. We have the necessary resources and equipment. Many domestic fabric and furniture producers are in a similar position,” he said.

Bassett echoed that sentiment. “We’re currently under capacity. If demand increases, we can scale quickly.”

How Tariffs Are Closing Loopholes for Chinese Retailers

However, not everyone is optimistic about a quick recovery. The National Council of Textile Organizations reports that 28 textile factories closed in just the past year, joining the many others that have shut down over the last two decades. For many in the sector, incongruities in U.S. trade policies pose significant challenges to investment and growth.

A Surge in Demand Amid Strategic Stagnation

At STI Fabrics, home to the Revolution Performance Fabric Brand, demand is high, but CEO Sean Gibbons is hesitant to expand rapidly, citing unclear policy directions.

“We have significant excess capacity and could more than double our current output,” Gibbons told Fox Business Correspondent Gerri Willis on “The Big Money Show.” “But we’d need to hire an additional 100 workers just to meet the existing demand from brands like Room & Board and Pottery Barn.”

STI, operational since 1964, feels it is one of the few remaining competitors in the Carolinas.

“We’re still manufacturing in the U.S.,” Gibbons noted, “but the next administration could alter everything, complicating investments.”

A Crossroads for the Industry

This year’s High Point Furniture Market, America’s largest and oldest furniture fair, exhibited a blend of resilience and caution. With recent tariff announcements on participants’ minds, retailers, manufacturers, and distributors gathered not just to showcase their offerings but also to reassess their procurement strategies and supply chain dynamics.

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Ben Muller, vice president of marketing at High Point Market Authority, noted that attendance from international buyers has declined significantly this year, largely due to geopolitical disruptions.

Businesses are clearly committed to adapting amid evolving geopolitical risks, cost pressures, and changing consumer expectations. The future of American furniture seems to lie at the intersection of domestic resurgence and global interdependence.

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