by Fluidity of situation requires a steady flow of information, including the latest pricing — but as one industry source noted, this has materialized into something ‘vague, not vogue’
HIGH POINT — Following the announcement last week about reciprocal tariffs, furniture resources have been in near-constant contact with dealers, communicating their plans to the best extent they know how given the turbulence and ever-changing nature of the situation.
Letters recently obtained by Home News Now aim to assure dealers that these companies have plans in place to address the situation, particularly given the rates President Trump announced on countries such as China, Vietnam, India, Cambodia and Malaysia.
For example, Flexsteel said on April 2 that it was assessing how the tariffs will impact products sourced from all regions.
“Once we have a clearer understanding, we will communicate our planned pricing actions with you,” wrote Brian DesBiens, vice president of retail sales for Flexsteel.
He added that all new orders received after 4 p.m. April 2 may be subject to a tariff surcharge. He also said that all inbound containers, regardless of the original order date, could incur a tariff surcharge at the time of customs clearance.
“Unfortunately, these tariffs are expected to cause substantial disruption across our industry,” he wrote. “We will continue to take a thoughtful approach on our response because we value the strong partnerships we’ve built through challenging times like these. … Please note that we are aggressively working to minimize the cost impact on you and your customers.”
The company said it continues to review its options moving forward.
“Obviously we think 46% is unattainable in the long run,” said David Crimmins, vice president of sales, noting the company expects to have a new letter to its dealers as early as today. “It is devastating to the U.S. consumer. Hopefully the two sides can get some form of a better agreement.”
Scott Hill, head of sales at New Classic Furniture, told Home News Now that the company already has shifted samples of its remaining motion frames that it was having built in China to Vietnam. It made the move as soon as it was announced that the China tariff was going up to 20% in February.
Right now those frames and other products coming out of Vietnam could still face a 46% tariff, but that is still lower than the 54% tariff China faces currently, including the additional 34% set to take effect April 9.
“We are hopeful that number is not the final number,” Hill said of the Vietnam rate, adding that the company will not be shipping any product past April 9 without concessions from overseas factories. “But unfortunately right now, nobody knows anything. We are just waiting to see what it is. The general consensus from everybody is that we have to take a wait-and-see approach.”
Gabriele Natale, managing director of motion furniture manufacturer Manwah USA, provided information on Vietnam tariffs that could impact business operations.
First, he noted, Vietnam removed tariffs on U.S.-made products, a scenario in which reciprocal tariffs of 46% might not apply. He also noted that there is a Section 232 investigation related to wooden furniture, meaning this would not be subject to immediate tariffs and that a final decision was expected after the investigation concludes.
He added that, should the 46% tariff remain in place, “We at Manwah are prepared to offer a solution by becoming the importer of record and switching to a First Sale method. This approach has the potential to reduce the effective tariff rate to approximately 35%, and we assure you that this reduction will be passed on at cost to our valued partners.”
Retailers were asked to confirm their participation in the program, as “Your timely feedback is crucial as it will help us navigate these changes efficiently.”
Full-line furniture resource AICO told dealers this week that all current inventory remains free of reciprocal tariffs and
price increases — although this is only for as long as supplies last. This includes some 50 collections that are stocked in its Pico Rivera, California, warehouse.
“We want our retail partners to know that our warehouse is fully stocked with product that is not impacted by the newly announced reciprocal tariffs,” said company President David Koehler. “This is an open window of opportunity to secure product at current pricing before these external costs affect future shipments.”
The company said it will absorb a portion of tariffs on container direct shipments to customers in the United States, and that it will assess a tariff surcharge “once the full scope of the new regulations is clarified. The exact amount of the surcharge is still being evaluated and will be communicated as soon as more definitive guidance is available.”
Four Hands said late last month that it continues to actively monitor the “rapidly evolving tariff landscape and are working diligently with our manufacturing partners to mitigate the impact on our customers.”
It noted that in response to a second round of tariffs on China announced on March 4, it was making a price adjustment on impacted goods beginning April 3. It also said that its teams “will continue to monitor goods affected by the global steel and aluminum tariff implemented March 12. We are also monitoring the proposed tariffs on Mexico.”
“Four Hands has built a strong, diversified supply chain spanning 12 countries, including the United States,” said Chief Revenue Officer Michael Bullock in a March 27 letter to dealers. “This strategic approach allows us to maintain flexibility in product development and minimize potential disruptions. We will continue to work closely with our global manufacturing partners to mitigate the effects of these tariffs for our customers.”
UMA Home Décor told dealers in a letter issued Friday afternoon that the tariffs are expected to affect a wide range of imported furnishings, including some of the “key materials and products we rely on.”
The company added that it is “actively reviewing the impact with our factory partners and we are focused on making smart, strategic decisions that protect your margins and ours — without compromising on the quality or design you expect from us. If you are planning on upcoming orders, we encourage you to move forward now to take advantage of current pricing.”
Companies that sent out letters prior to this are likely having to adjust their own strategies and pricing as their initial communications were based on 20% tariffs on Chinese imports put in place in February. An additional 34% tariff, bringing that total up to 54%, which is on top of a 25% rate implemented in 2018 during Trump’s first term.
Tariffs of 20% on the European Union and 26% on India, not to mention 49% on Cambodia, add another wrinkle to the mix, impacting companies that thought they might have a safe haven in those places.
Tariffs of 10% were imposed on other countries throughout the world, including Colombia, the U.K., Brazil, Chile and Australia, to name several, effectively matching the tariffs they impose on U.S. products.
Domestic resources also have issued communications, reminding dealers of their U.S. capacity and capabilities, representing a timely opportunity for many retailers trying to minimize their exposure to higher prices from Asia and even Europe.
For example, South + English told dealers that all of its furniture and art products are made in the U.S.
“That means our clients will not see price increases or delays related to the latest round of tariffs,” the company said in an email alert issued on April 3, a day after the reciprocal tariff announcement.
“Designing and making our collections domestically gives South + English full control over quality, materials and timelines. It also allows our founders, Palmer Smith and David Ebbetts, to stay hands-on with every detail — reviewing, refining and ensuring each piece lives up to the vision.”
In a recent letter to customers, case goods manufacturer Vaughan-Bassett also reminded dealers of its strengths as a U.S. manufacturer. In addition to some $25 million in inventory, the company said that it is capable of ramping up its factories “very quickly, as demand may require us to.”
It also noted that it will guarantee no price increases through Friday, Aug. 1, for goods already on the dealers’ floors. For any new placements on collections that are ordered and shipped before April 22, it said it also will guarantee existing prices through Aug. 1.
In addition, it announced 25% discounts on all new orders on select groups including its Vista, Yellowstone, Lancaster County and Yosemite, “first come, first served.”
Also, encouraging dealers to make appointments for market with their sales rep or company management, it is opening its showroom at noon, April 21, several days prior to the April 26-30 High Point Market.
“Vaughan-Bassett and Artisan & Post are the only U.S. manufacturers capable of offering in-stock immediate shipments in volume, and we want to do everything possible to help you during these uncertain times,” the company said. “We are excited to work with you and help solve your problems and challenges, and we thank the hundreds of dealer/partners who have supported us for many years. We will also provide weekly updates through our reps on our stock position, so that our dealers can make the best informed and most intelligent buying decisions during these uncertain times.”
