by Some are touting their hold on prices, along with available inventory in domestic warehouses, while others continue to promote their made-in-USA capabilities
HIGH POINT — As the industry prepares to attend the High Point Market starting early next week, a number of suppliers have tried to ease customer concerns regarding the impact tariffs could have between now and the time they become finalized by early July.
Communications issued within the past 10 days or so aim to share what these companies know at this point and what it could mean for pricing in the near future.
Ashley Furniture, for example, told customers that it has made the decision to postpone any price increases until the situation stabilizes.
“We understand the importance of price stability for your business and the consumers we serve,” wrote Ashley CEO Todd Wanek. “Therefore we are absorbing the current tariff-related costs to support your competitiveness. We continue to closely monitor the situation, hoping for a favorable resolution that avoids price increases.”
He added, however, that if an agreement is not reached between the U.S. and Vietnam/other countries by June 1, 2025, “we will be required to implement a price increase based on current information. This potential price increase would be effective on June 15 for new orders and on June 29 on all open orders that have not been invoiced at that time.”
“We are not saying for sure we are going to take a price increase, but we are just trying to delay it as long as we can,” Wanek told Home News Now. “We didn’t want to move super fast on this because there are 45 days to go roughly, and there are a lot of conversations to happen between now and then.”
In the letter, he said the company will keep customers informed of any further developments and provide further details as they become available.
Flexsteel told its dealers on April 9 that it will have no tariff surcharge on North American made-to-order goods which are currently exempt under the USMCA (United States Mexico Canada Agreement).
“Although we have experienced significant in raw materials due to extreme global tariffs, we continue to absorb these increases and are holding our price,” wrote Brian DesBiens, vice president, retail sales. He added that there will be no tariff surcharge or change to the current landed price for goods out of its warehouse.
However, he noted that shipments where Flexsteel is the importer of record on containers that shipped after April 9 would have a 3.5% tariff surcharge on the cost of the container.
“Flexsteel will be absorbing a majority of the tariff imposed by the U.S. government which is currently set at 10% for products exported from Vietnam,” he wrote, adding that the tariff surcharge will be added as a line item to the final invoice.’
In cases where the retailer is the importer of record, he noted, the retailer will be responsible for paying the full 10% tariff.
Elements International told dealers that it will effectively split the cost of the 10% tariff with the retailer including on shipments from Vietnam and Malaysia where either the retailer or Elements acts as the importer of record. Thus, the cost would be shared at 5% in either case.
“Please note that this action is in place for the next 90-day period ending July 8, unless there is a change in tariff rates affecting these items,” the company said. “We greatly appreciate your understanding and cooperation as we work together to maintain our high standards and support our partners.”
Upholstery manufacturer England Furniture Company told dealers on Thursday April 17 that it was implementing a 5% tariff surcharge effective for orders scheduled for production starting Monday May 5. The increase will apply to fabric and leather stationary and motion upholstery as well as sleepers.
Company President Terry England said that while the company is a U.S. manufacturer and sources much of its supplies domestically, it is having to pass along these increases to offset tariffs on materials it sources globally, including critical components such as electronics, fabric, steel and leather.
“While these changes do not fully cover the tariff increases we have sustained, as a committed partner we are attempting to offset a significant impact on our dealers, while remaining responsive to the ever-evolving situation,” he wrote. “It remains our sincere hope that these tariffs will be short lived so that surcharges can be reduced or removed. In the meantime we will continue monitoring the situation and keep you informed of any additional adjustments.”
Ambella Home has told its customers that it is taking a wait-and-see approach as the tariff issue develops in the weeks and months ahead.
However, company President and CEO George Moussa said that it will not be raising any prices or enacting any surcharge at least until Aug. 1.
“We are going into market pricing things the same way we have always done,” he said. “Should there be a price increase in the future, Ambella will provide ample notice so you can make the necessary adjustments going forward. We are all in this together.”
Howard Elliott Collections said that it is maintaining current inventory pricing on all items currently in its warehouse and is also reviewing how tariffs might affect future prices, with plans to keep customers informed of any necessary adjustments as much in advance as possible.
In addition, it said, it is working with its customs brokers to “understand the impact and make smart, timely decisions.” It also noted that customers can take advantage of its new website featuring AI search tools to help them find in-stock and similar alternatives, while also noting that many of its textile products such as pillows, throws, ottomans and poufs are made in the U.S., making them tariff-free.
Also touting its made-in-USA capabilities is wood furniture manufacturer Vaughan-Bassett, which, in a letter sent to dealers earlier this month, detailed its U.S. manufacturing capabilities and estimated $25 million in finished goods inventory. Full-line home furnishings resource StyleCraft also recently touted its mix of made-in-USA products including sofas, chairs and ottomans, as well as lighting and wall art.
Others representing source countries outside the U.S. are touting their capabilities in furniture production at what are relatively low tariffs for the time being.
Elif Cohn, an independent sales professional representing Turkish manufacturers, shared with Home News Now and other industry media that furniture exports from Turkey are currently subject to a 10% tariff, which she said, “Creates a meaningful cost advantage. Additionally, container shipping rates from Turkey remain competitive in the $2,500 to $3,000 range.”
She also noted that Turkey remains competitive in that it has labor costs that are significantly lower than countries in the European Union and more in line with those in China. Other advantages she mentioned include a strong raw material base that supports end-to-end furniture production without heavy reliance on imports, while also noting that Turkey is a major exporter of glass, metal, marble, stone and upholstery fabrics that are all major components in furniture.
She also pointed out that Turkey offers shorter lead times than many other source countries and has a rich local supply of wood species such as walnut, oak, ash, beech and poplar that contributes to its “reputation as a self-reliant and vertically integrated manufacturer.”
“Over the past three years, I’ve had the opportunity to assist American companies in finding alternative manufacturing partners outside of Asia,” Cohn noted. “In doing so, I’ve seen firsthand how Turkey has emerged as a compelling and reliable sourcing option. … “Turkey offers a valuable combination of cost-efficiency, materials availability and high manufacturing standards that align well with the evolving needs of U.S. furniture companies.”
Without a doubt, other resources, including those that source directly from China, are faced with difficult choices in the coming weeks. At 145% currently, China faces the steepest tariff of all.
Importer Debrah International produces 100% of its product line in China, meaning tariffs would impact final pricing significantly on goods being shipped directly from China moving forward.
“As a new American-operated company, we certainly are affected by what is happening here in the U.S. as it pertains to China,” company CEO Bill Cubberley said in a letter to reps that he shared with Home News Now earlier this week, adding that the two countries are too important to each other to not work things out.
However, Cubberley also noted that the company has some $500,000 in inventory in North Carolina that can be shipped at current wholesale pricing, tariff-free. Order minimums have been set at $5,000, and new sample orders will receive free freight and 90-day payment terms.
“During this time, customers will have a fresh new look on their floor to excite both their salespeople and their customers before having to shell out a dime,” Cubberley told the reps, adding, “We very much plan to keep our warehouse full and sell full and mixed containers. However, we will announce an ongoing plan on future pricing and product stocked after we have certainty on the tariff situation.”
These are just some examples of tariff-related communications obtained by Home News Now in recent days. If you have any other communications you would care to share with us about how you or other companies you know of are handling the tariff situation, please email Home News Now Editor-in-Chief Tom Russell at tom@homenewsnow.com or Editor-at-Large Ray Allegrezza at ray@homenewsnow.com.
