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Thread: Tariffs and what it means to you.

  1. #1
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    Default Tariffs and what it means to you.

    There is a LOT of confusion on tariffs that are being imposed by the Trump Administration on Furniture and product that comes out of China. I know - I absolutely know - that people are going to be caught short on these in less than 60 days. So I thought I would put another post out on it here in the Lobby.

    There is a current 3% Tariff right now.

    That tariff goes to 25% on January 1st.

    So, what does that mean to you as a consumer? Let me take an example (and I will break Hancock and Moore pricing policy for this example only)

    One of the best sofas in the line is the # 5831-3 Ricki Sofa. In the Just in Time promotion this sofa is/was priced from my store in Juno Dove or Soft Blue (less delivery fees to you):

    Pre-Tariff: $ 2,788
    Current 3%: $ 2,872
    Jan 1st 25%: $ 3,485

    This pricing model assumes two things 1) This tariff will not be politically resolved in the next 60 days 2) There are not other price increases from the maker in addition to the tariff increases that can make it even more.

    Not the crazy part of this example is Juno is actually an Italian leather, and is shipped from Italy to be cut and sewn in China prior to application to the USA-made frame and upholstery in Hickory NC therefore it is subject to the tariff.

    So, if you are thinking about one of these items affected, you would be very wise to order it prior to December 21st. Do not wait until the end of December because all the furniture factories in North Carolina have their last day on Dec 23rd and will not return until January 3rd. They may or may not be pulling orders during that closed period time, why take the chance?

    I have no idea how the furniture companies are going to handle this. Some will drop fabrics and leathers made in China, others like Hooker Furniture will probably move production to Vietnam, Malaysia or Mexico, but that takes time to build new factories and get workers. It's a real mess - so if you are on the fence about an item and think "I'll do it after the Holidays" you make get a nasty sticker shock on it first of the year.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  2. #2
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    Default Re: Tariffs and what it means to you.

    I am only considering a non program piece in an ottoman so will non program pieces cut and made here from some of the higher grade non protected leathers be ok, do you think? Not at all sure I could do it right now anyway, but I am hoping it being a non program piece makes it less likely to be effected .

  3. #3
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    Default Re: Tariffs and what it means to you.

    If the product is shipped out of China, then its subject to the tariff - from any maker, promotional or not.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  4. #4
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    Default Re: Tariffs and what it means to you.

    I don't believe everything from H&M ships out of China was really what I was saying. Maybe I am wrong about that, but I thought pieces that were built and cut here with leather from places other than China would not be effected, that is all. Maybe everything, even the Italian leathers, are tanned in China so everything will be effected? I guess we will have to wait and see. Maybe it will be the incentive some people need to move out of the pieces pre cut in China. Glass half full?
    Last edited by SueCT; 11-03-2018 at 06:18 AM.

  5. #5
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    Default Re: Tariffs and what it means to you.

    Hancock and Moore products affected by tariffs are shown in this thread. It is covers only, Hancock and Moore is USA-made product.

    http://www.myfurnitureforum.com/show...al-springs-etc
    Last edited by drcollie; 11-03-2018 at 10:00 AM.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  6. #6
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    Default Re: Tariffs and what it means to you.

    Why would the price of the sofa go up by 25% if the tariff only applies to parts made in China?

  7. #7
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    Default Re: Tariffs and what it means to you.

    Different companies have responded to these Trump Administration tariffs in different manners. Bradington-Young for example, added 3% on every item in the line, even though you *can* buy one with no Chinese parts except for perhaps springs and screws. Hancock and Moore did it on covers only. Century did it on covers only. I don't set policy on pricing, and I don't have a crystal ball to know how this is going to shake out. My post is there to help folks be aware there are political forces at play here which may affect the price of an item they are looking at.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  8. #8
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    Default Re: Tariffs and what it means to you.

    Of coarse you can’t know and your information is appreciated and helps all of us at least make more informed decisions. Thank you.

  9. #9
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    Default Re: Tariffs and what it means to you.

    Here's a prime example of what I am doing as a dealer. I saw these products in the Hooker Furniture showroom at the High Point Market and did a double-take, then went back to them three times. Hooker is made in China, and I have not seen this quality of goods in their leather furniture before. That's an Italian aniline pull-up hide on these chairs! They pass my test, which is "Would I have these in my own home? Yes, I would"

    Note: You will not see these posted on the Hooker website yet, and there are no leather or wood selections, they come only as shown.

    While these won't be arrive in the USA until probably March, I am pre-ordering a quantity now to get my price locked in before the 25% tariff takes place January 1st. Smart money is getting ahead of the game as I don't think these trade issues will be resolved in the next 7 weeks. Smart customers will do likewise if they think the pieces they are interested in may have a connection to China.

    This chair is called the Burrell Leather Accent Chair and will sell for $ 1,075 before the tariff, $ 1,339 after Jan 1.

    Click image for larger version. 

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    And this one is the Hess Swivel Chair in the same leather (Venerando Latte) $ 989 now before the tariff, $ 1,235 after Jan 1.

    Click image for larger version. 

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    Last edited by drcollie; 11-05-2018 at 05:48 PM.
    Duane Collie
    Straight answers from thirty-six years in the business.
    My Private Messages are Disabled - Please ask questions here in the forum.

  10. #10
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    Default Re: Tariffs and what it means to you.

    What a timely thread as I struggle to furnish an empty home, Duanne. Is it possible to get more information on the Hooker Hess Swivel Chair mentioned above? Dimensions? And in particular, does it sit in similar fashion to H & M's Gordon Chair? Since the chairs will be in a second home, wondering whether it warrants the price difference between the two companies. Delayed delivery of the item is not a problem.
    Thanks so much.

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