Suppliers react to tariffs with mix of price hikes, adjustments

Some changes were effective days before the Trump administration delayed the tariffs on Canada and Mexico from taking effect

HIGH POINT — Under the strain and/or threat of 25% tariffs that’s largely dependent on the day of the week, furniture suppliers have begun to implement price increases and related measures aimed at helping cover their costs.

The tariffs range from a 20% increase on goods from China to 25% on products coming into the U.S. from Canada and Mexico, originally effective March 4. On Thursday the tariffs on most Mexico and Canadian products were delayed until April 2.

New Classic Home Furnishings sent a letter to dealers dated March 4 that said it is implementing a 5% price increase on its products sourced from China, effective March 3 or later for all container-direct shipments. The price hike is effective April 1 on all products shipped from its U.S. warehouses.

The increase is in response to a 20% increase in tariffs on China imposed by President Trump starting in February.

The company said in the letter to dealers that only products from China are affected, including its Kellen, Nikko, Park City and Bravo motion upholstery groups.

New Classic’s Nikko motion upholstery group is among the products coming out of China that will be impacted by the price increase.

“The adjustment ensures that we can continue to provide you with the quality, service and reliability that you expect,” Michele McPherson, vice president and general manager, told dealers in the letter. “We remain committed to competitive pricing and will continue to explore ways to mitigate cost increases where possible.”

She added that individual account representatives would be available to discuss any questions or concerns relating to the increase.

“We appreciate your understanding and continued partnership and look forward to serving you,” she said.

In a letter dated March 5, Miguel Ochoa, president of Mexico case goods manufacturer IFD, said the company has been exploring options to help “as much as possible in case tariffs are permanently implemented.”

“We realize that we need to work together as partners,” Ochoa said, adding that it plans to only pass along half of whatever tariff is ultimately imposed.

“Currently the tariff is 25%, which means that IFD will add a surcharge of 12.5% to orders shipping starting Monday, March 10, unless they change. … Then we will adjust accordingly.”

“We want you to feel confident that even through this difficult challenge, our quality and services will maintain high standards, and as partners we will work together for our mutual success,” he said.

In a letter dated March 4, Canadian manufacturer Amisco said that all existing orders in its backlog will be shipped at originally confirmed prices. But for new orders, the company said it “is unable to absorb the full cost of these tariffs within our existing price structure.”

To help manage the situation, it said it will not charge the 25% tariff on orders confirmed before noon on March 4. For orders placed after that point, it said it would begin charging the tariffs imposed by the U.S. on all products shipped to the U.S.

However, it also said it is temporarily offering a 5% promotional discount “to help alleviate the impact for you, our customers and keep our products as affordable as possible.”

“This decision marks a significant shift in trade relations, and we deeply regret the impact it will have on our long-standing business partnership,” said company President and CEO Luc Robitaille, adding that it is unable to absorb the full cost of the tariffs within its existing price structure.

The company said if the tariffs were lifted, “we will revert to the initial situation as it was before March 4th, 2025, and remove the 25% tariff charge and the 5% temporary discount.”

“We firmly believe that no one benefits from these tariffs — not our customers, not the final consumers and not our company,” Robitaille added. “We truly appreciate your continued trust and partnership during these trying times. Please do not hesitate to reach out to us with any questions or for further support.”

Custom solid wood furniture manufacturer Canadel also said in a letter to dealers dated March 4 that from March 4 to April 1, it is reducing costs by 12.5% on new orders and current backlog that will offset the 25% tariff. It also will review the situation weekly during the four-week period to determine if any other adjustments are needed.

Canadel President and Chief Operating Officer André Giguère said that, in addition, the company is “actively exploring strategies such as supplier negotiations, logistical optimizations and operational adjustments to maintain stability in our product offering and pricing.
At Canadel, we deeply value the strong relationships we have built with our retail partners. We greatly appreciate your partnership and understanding as we work through this situation together.”

Home News Now also has reached out to other producers for their reaction about tariffs, including upholstery producers El Ran and Palliser and Canadian RTA producers Dorel and Prepac and is awaiting their official response.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

View all posts by Thomas Russell →

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