Trump says new tariffs will bring furniture making back to the US; experts are skeptical
Published On Mar 6, 2025, 8:00 AM
President Trump is advocating for tariffs to revitalize North Carolina's furniture manufacturing sector, which he claims has been devastated by overseas competition. Tariffs have been implemented on imported goods from Mexico, Canada, and China, potentially leading to significant price increases for consumers. However, industry experts, including Shannon Williams of the Home Furnishings Association, express skepticism about the return of manufacturing to North Carolina due to high labor costs and tariffs on raw materials. There are concerns that these tariffs could disrupt supply chains and lead to layoffs, particularly in smaller firms unable to adapt quickly, while larger manufacturers may seek to relocate production. The anticipated increase in costs could depress consumer demand and affect the broader furniture export market and home-building industry.
Stock Forecasts
XHB
Negative
The tariffs could lead to higher prices for furniture and related products, thereby affecting sales volumes negatively. The uncertainty surrounding supply chain disruptions and retaliatory tariffs could further hamper growth in the sector. Additionally, companies that have relied heavily on Chinese manufacturing may face significant challenges in adjusting their operations.
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