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Thread: Trumps imposes new tariffs on China : Furniture among them, and metal springs, etc.

  1. #11
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    Default Re: Trumps imposes new tariffs on China : Furniture among them, and metal springs, et

    I had considerable discussions with furniture executives at the High Point Market and these tariffs - if they continue - will have a MAJOR impact on furniture pricing and where things are being made. The one now in effect is small, 3% on furniture product from China, but this tariff goes to 25% on January 1 unless its politically resolved by then. Manufacturers are scrambling to move production from China to other countries and open factories in Vietnam, Nicaragua, and Mexico - and pull out of China. It's going to happen. And once they leave China they are not likely to return is the thought. This won't impact a domestic company like Hancock and Moore as much as it will an import company like Hooker Furniture - most of whose product is made in China. If that 25 % tariff goes into effect, you are going to see things like Chinese-tanned leathers dissapear from a manufacturer's line.

    Some customers have existing pieces and think about adding another item in the same leather or style. My advice is do so now if the original piece was produced in China or of Chinese materials - you may not be able to get it after first of the year.
    Duane Collie
    Straight answers from thirty years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum
    I ask that you do NOT call my store with general furniture questions, that is what the forum is for

  2. #12
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    Default Re: Trumps imposes new tariffs on China : Furniture among them, and metal springs, et

    Posting again on this thread as I know from experience many folks are currently focused on finishing Christmas shopping and January is when people return to furniture purchases. By then - it may be too late and you might get a nasty pricing surprise!

    I have been on the phone with many of the CEO's of the furniture manufactuers and it does not appear that the Trade War tariffs are subsiding. They are expecting the 25% tariff hike to be in effect on January 1st. It has been at 3% since early fall. Different companies will react in various ways but none of them are going to absorb it - so it's going to translate to higher prices or discontinued product.

    Obviously pieces that are produced in China are going to take a big hit. Other companies it will be more subtle. For example, US steel mills have nearly doubled the price of steel since the tariff came into place. So companies like Hancock and Moore that buy USA steel for springs in their 8-way suspension systems will see higher component prices because the industry has hit then hard with increases. Fabrics: A lot of them come from China and will go up several grade steps or be dropped. Married Leather Covers are almost always done in China, even though the leather may be from an Italian tannery (such and Kip from H&M) they are kitted-up in China and subject to the tariffs.

    So it's a mess. One thing if for sure, we will see a rash of new price lists coming January 1. I don't have the crystal ball to say how much or what's affected, but I know for certain there will be folks caught unaware by it and upset that the sofa they were considering buying for $ 2,500 in December is $ 3,200 in January.

    I do not believe there is going to be a political resolution to these tariffs in the next two weeks and I don't think anyone else does, either. I do know that pricing will not change through Dec 31st so you are good to go until then.

    The furniture industry closes for Winter Vacation from Dec 21st through January 1st so any requests for samples or custom quotes really needs to be done in the next 48 hours.
    Duane Collie
    Straight answers from thirty years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum
    I ask that you do NOT call my store with general furniture questions, that is what the forum is for

  3. #13
    Join Date
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    Default Re: Trumps imposes new tariffs on China : Furniture among them, and metal springs, et

    Looks like the 25% tariff due to arrive Jan 1 has been put off until March - none of the affected companies are taking pricing on it at this time. Apparently Trump and Xi Jinping had a sit-down at Mara Lago and tabled the increase until then. More as I hear further....
    Duane Collie
    Straight answers from thirty years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum
    I ask that you do NOT call my store with general furniture questions, that is what the forum is for

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