by Communications aim to help industry stay up-to-date on key issues regarding these moves that will impact global trade
HIGH POINT — In recent alerts to the industry, various groups have tried to answer questions and eliminate some confusion regarding the imposition of tariffs by the Trump administration.
The communications address tariffs ranging from 10% on countries with normal trade relations with the U.S. to reciprocal tariffs with other countries, including China, which faces a 54% rate including a 20% hike implemented in February.
Logistics and customs expert CV International said that the 10% tariff was effective April 5 and that reciprocal tariffs are effective April 9. It added that country-specific reciprocal tariffs will not be assessed in addition to the 10% tariff.
“What this means is that a country like China will be assessed the additional 10% tariff for four days and then their country-specific tariff of 34% will be effective on April 9,” the firm said last week.
It also noted that goods loaded on a vessel for exportation prior to April 5 and entered for consumption prior to May 27 are exempted from the latest round of tariffs.
In addition, it published a list of the effective rates for various countries that can be found here along with products that have been exempted from the tariffs, which can be found here.
“Please note that the established rates for the country-specific tariffs are subject to change,” the firm noted. “Countries may be able to negotiate a lower tariff by actions such as lowering the tariffs they charge the U.S., and tariffs may be increased on countries that install retaliatory tariffs.”
The American Home Furnishings Alliance also has been receiving many questions about the tariffs and this past Thursday issued a member bulletin aimed at helping answer some of the questions. It also provided some details from Washington, D.C., law firm Mowry & Grimson for additional clarity.
“According to Mowry & Grimson, trade attorneys for AHFA, the executive order confirms that, with limited exemptions, merchandise imported into the United States from all countries will be subject to a 10% tariff effective at 12:01 am EDT on April 5, 2025,” AHFA noted in its bulletin. It also noted that the order includes an exception for “goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. Eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. Eastern daylight time on April 5, 2025.”
As noted by CV International, it said the country-specific tariffs are effective at 12:01 a.m. ET April 9. The bulletin added that this is “except for goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. Eastern Daylight Time on April 9, 2025 and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. Eastern Daylight Time on April 9, 2025.”
The member bulletin also referenced the Department of Commerce’s Section 232 investigation into imports of timber and lumber and derivative products, including wood furniture.
“Some factories in Vietnam are interpreting this to mean that wood furniture from their country will be exempt from reciprocal tariffs until the Section 232 investigation is resolved,” AHFA CEO Andy Counts said in the bulletin, adding that the AHFA will continue to provide clarification as it becomes available.
The Home Furnishings Association also weighed into the issue with its own update published this past Friday evening. It confirmed the effective dates of the minimum 10% tariffs (April 5) and the country-specific tariffs are April 9.
It also noted that de minimis exemptions for goods under $800, which it noted are often used for Chinese imports, will be eliminated effective May 2, “resulting in significant changes to how smaller shipments are taxed and processed.”
“These sweeping policy changes are reshaping the global trade landscape, and the Home Furnishings Association is actively monitoring and advocating for our industry’s interests as we navigate these shifts,” HFA said in a news bulletin.
It added that reciprocal tariffs will not apply to some goods, including:
+ Articles subject to 50 USC 1702(b) (informational materials).
+ Steel/aluminum articles and automobiles and parts already subject to Section 232 tariffs.
+ Copper, pharmaceuticals, semiconductors and lumber articles.
+ Any articles that may be subject to future Section 232 tariffs.
+ Bullion.
+ Energy and other minerals not available in the United States.
“The sweeping changes to U.S. trade policy, including across-the-board tariffs and the elimination of the de minimis exemption for Chinese imports mark a significant shift in global trade dynamics,” HFA wrote. “While the administration aims to boost domestic manufacturing and address trade imbalances, these policies will have far-reaching implications for home furnishings retailers, suppliers and consumers.”
It added that it “remains committed to monitoring these developments, advocating for industry interests and providing timely updates to help businesses navigate this evolving landscape.”
Anyway you cut it/ the furniture industry will get royally screwed with these dam tariffs! I would really love to see furniture manufacturers back here in USA. My fear however is that it would take a few years to make the changes and many furniture manufacturers don’t have the luxury of waiting it out as well as furniture retailers. The only answer is the Tariffs must go away quickly. My entire career has been in the furniture industry both as a rep and in sales management. It’s a shamed that one man can bring down so much so quickly.