Furniture retailer stocks rise after Trump issues one-year pause on higher tariffs
President Trump’s announcement of a one-year pause on higher tariffs on upholstered furniture, kitchen cabinets, and vanities caused a surge in shares for home furnishing retailers. Luxury furniture retailer RH saw a 9.5% increase, while online retailer Wayfair jumped 6.3%. Stock for Williams-Sonoma, known for selling kitchenware and home decor, also rose by 5.3%.
The White House decided to maintain the original 25% tariff rate set by Trump in September, preventing the rates from increasing to 30% on upholstered furniture and 50% on kitchen cabinets and vanities. Economists were concerned that the tariff hikes could lead to significant price increases for customers, especially since furniture is a sensitive category and a major purchase for many families.
The delay in higher tariffs until 2027 was attributed to ongoing trade negotiations, not a reversal of the tariff agenda. The Trump administration is awaiting a Supreme Court decision on tariffs implemented under the International Emergency Economic Powers Act, with potential refunds of up to $168 billion to businesses if the tariffs are overturned.
President Trump defended tariffs as beneficial for national security and prosperity, expressing concern over losing the ability to impose tariffs on countries that treat the US unfairly. Plans for additional tariffs under alternative trade laws are reportedly in the works if the Supreme Court invalidates the current levies.
Despite the mixed results in the furniture industry last year, with Wayfair’s shares surging over 125% and RH’s shares declining by more than 50%, the White House continues to justify tariffs as a national security measure. Affordability concerns remain a top priority for voters leading up to the 2026 midterm elections.
RH CEO Gary Friedman’s candid reaction to the stock decline during an earnings call highlighted the impact of tariffs on the industry. Williams-Sonoma, the parent company of West Elm and Pottery Barn, also experienced a dip in shares last year.
