44% of Small Businesses Report Tariff Damage as Furniture Factories Grow

Originally published July 2, 2025. This version was rebuilt from the President's July 2 post as archived by the American Presidency Project, Alignable's June report and the ISM June manufacturing report for the FIN archive, and the facts are as of that date.

The first days of July 2025 brought some relief for furniture importers and fresh evidence of the strain on smaller businesses.

The short version

• The President announced a Vietnam deal with a 20% rate on its goods.
• Alignable found 44% of small business owners reporting revenue drops from tariffs.
• ISM's June survey listed furniture among nine manufacturing industries reporting growth.

A Vietnam deal

The President said Vietnam had agreed to a deal under which its goods would pay a 20% tariff, with a higher rate on goods transshipped through Vietnam. Details such as how the rate would apply to goods already in transit were still unclear.

Update. A July 31 order set Vietnam's rate at 20% effective August 7.

Furniture factories hold up

The ISM report released July 1 put the June manufacturing PMI at 49%, a fourth straight month of contraction. Furniture and related products was one of nine industries reporting growth, and it also reported growth in new orders, production, export orders and import volumes.

Not everything improved. Furniture makers were among the 10 industries reporting lower employment and among those paying higher raw material prices. Factories were filling orders without adding staff, which matched the caution small business owners described.

Small businesses feel it

Alignable's June survey of small business owners found 44% seeing revenue fall because of tariffs, up from 26% a month earlier, and one in five worried their business would not make it to 2026. The survey covered all industries, not furniture alone, though retail and wholesale were among the hardest hit.

Relief and pressure

A lower Vietnam rate helped importers plan, but many small businesses were already losing sales, and furniture factories were growing without hiring. Cash and flexible sourcing mattered more than ever.

Related on FIN

• Follow the Tariff Dollars
• Furniture Showrooms Run on Morale

Sources

• The American Presidency Project, Truth Social posts of July 2, 2025
• The White House, Further modifying the reciprocal tariff rates (July 31, 2025)
• Alignable, Small business tariff report, June 2025
• Institute for Supply Management, June 2025 Manufacturing ISM Report On Business (July 1, 2025)