Wayfair, Williams-Sonoma shares slide as Trump targets furniture imports

U.S. President Donald Trump announced a 50 per cent tariff on imported kitchen cabinets and vanities, along with a 30 per cent levy on upholstered furniture, which are set to take effect on Oct. 1.. (Dave Charbonneau/CTV News Ottawa)

Shares of U.S. furniture companies, including Williams-Sonoma and Wayfair, fell on Friday after U.S. President Donald Trump unveiled fresh import tariffs targeting kitchen cabinets, bathroom vanities and upholstered furniture.

As part of his latest tariff onslaught, Trump announced a 50 per cent tariff on imported kitchen cabinets and vanities, along with a 30 per cent levy on upholstered furniture, which are set to take effect on Oct. 1.

Shares of online retailer Wayfair, which relies heavily on imports from China and Vietnam, were down six per cent in premarket trading on Friday, while those of Pottery Barn-owner Williams-Sonoma were down three per cent.

Luxury retailer RH’s stock was also down nearly four per cent. The company, formerly known as Restoration Hardware, also sources a significant portion of its products from overseas like the others.

Heading into the all-important holiday selling season, most U.S. retailers, including furniture firms, have issued cautious sales and profit forecasts as shoppers remain prudent about spending on big-ticket items like sofas and dining tables.

“Tariffs take time to trickle down to consumers. Most holiday goods will be imported before Oct. 1, so the new duties are unlikely to dent sales. But they add another hurdle for home improvement and home furnishings retailers, already grappling with a stagnant housing market,” eMarketer’s Zak Stambor said.

The CEO of Williams-Sonoma had said in August it would be “very difficult for the industry, even if tariffs are put on, to bring a huge amount back to the United States in a short window of time.”

“There aren’t the factories available to do a lot of production,” CEO Laura Alber said on a post earnings call last month.

The company made about 18 per cent of its products in the U.S. as of fiscal 2024.

In contrast, shares of furniture retailers with more production in the U.S. rose. La-Z-Boy gained about six per cent, while Ethan Allen Interiors was up three per cent in premarket trading.

Wayfair, Williams-Sonoma, La-Z-Boy, Ethan Allen and RH did not immediately respond to requests for comment.

(Reporting by Aishwarya Venugopal and Neil J Kanatt in Bengaluru; Editing by Leroy Leo)