Navigating the Turbulent Waters of Tariffs. Insights from the Furniture Industry

Originally published April 7, 2025. This version was rebuilt from the April 2 executive order's annex and RH's fourth quarter results for the FIN archive, and the facts are as of that date.

By April 7, 2025 furniture importers had the full list of country rates set to start on April 9. The numbers for the biggest Asian suppliers were far above what most had planned for.

The short version

• The annex set Vietnam at 46%, Cambodia at 49% and China at 34%.
• RH reported fourth-quarter revenue of $812 million, up 10%.

The country rates

Annex I to the April 2 order set reciprocal rates of 46% for Vietnam, 49% for Cambodia, 36% for Thailand, 32% for Indonesia, 24% for Malaysia and 34% for China, effective April 9. Those countries supply most U.S. furniture imports.

Before the country rates, the same order applied a 10% additional duty to imports from nearly all trading partners starting April 5. Goods already loaded on a vessel and in transit before each deadline were exempt for a limited time, which gave importers a short window to land goods already at sea.

Update. Two days later the higher rates were paused for 90 days for every country but China.

RH reports

RH reported fourth-quarter revenue of $812 million, up 10%, and said it expected a higher-risk year because of tariffs, market volatility and inflation. The company said it had been operating in the worst housing market in almost 50 years.

RH said demand for its RH brand had stabilized at up 19% in January, showing that high-end shoppers were still buying even as housing stayed weak. Tariffs were the new variable for the rest of the year.

Plan for the worst case

The annex rates were a worst case that importers had to price immediately. Companies with flexible sourcing and strong brands were best placed to ride it out.

Related on FIN

• Follow the Tariff Dollars
• Move-In Furniture Tickets Are Drying Up

Sources

• The White House, Executive Order 14257 with Annex I (Apr. 2, 2025)
• The White House, Executive Order 14266 (Apr. 9, 2025)
• The White House, Executive Order 14257 (Apr. 2, 2025)
• RH, Fourth quarter and fiscal 2024 results and shareholder letter (SEC filing)