Tariff Reset. Furniture Margins Face Higher Costs and Sourcing Shifts

Originally published March 31, 2026. This version was rebuilt from USTR, Conference Board and Purple releases for the FIN archive, and the facts are as of that date.

After the Supreme Court ruling, tariff policy was being rebuilt on different legal footing. For furniture, the new investigations pointed at nearly every major sourcing country at once.

The short version

• USTR opened Section 301 investigations into most major sourcing countries, including China, Vietnam, Mexico and India.
• Consumer confidence rose slightly in March, but expectations fell.
• Purple's fourth-quarter revenue grew on wholesale.

A new tariff foundation

USTR opened Section 301 investigations into excess manufacturing capacity in 16 economies, including China, the European Union, Vietnam, Mexico, Malaysia, Cambodia, Thailand and India. Section 301 findings can lead to new tariffs.

Moving production from China to Vietnam and other Southeast Asian countries had been the industry's main answer to tariffs. With all of them under review, there was no obvious place left to shift sourcing.

Meanwhile the temporary 10% surcharge was due to run for 150 days.

Confidence inches up

The Conference Board's index rose to 91.8 in March, while the expectations index fell to 70.9.

Purple grows through wholesale

Purple Innovation reported fourth-quarter revenue of $140.7 million, up 9.1%, driven mainly by wholesale, including expanded Mattress Firm placements and Costco.

Margins under pressure

With new tariff investigations covering most suppliers and shoppers still cautious, furniture makers and retailers faced higher costs with little room to pass them on.

Related on FIN

• Follow the Tariff Dollars
• Furniture Sales Rose. Costs Are Rising Faster.

Sources

• Office of the US Trade Representative, Section 301 investigations relating to structural excess capacity, March 11, 2026
• The White House, Proclamation imposing a temporary import surcharge (Section 122)
• The Conference Board, US Consumer Confidence Inched Up Again in March
• Purple Innovation, Fourth quarter and full year 2025 results (SEC exhibit 99.1)