Tariffs ignore and highlight the realities of the global supply chain

Most products including furniture have some type of imported components that likely will raise the price for consumers

HIGH POINT — The term “imports” often generates mixed feelings from U.S. consumers.

On one hand, we want to buy made in America for the simple reason that it makes us feel like we’re fulfilling part of our patriotic duty, particularly in supporting American workers. But in addition to supporting those jobs, we’re also buying what we perceive as something that is higher quality and that also meets U.S. safety standards sometimes ignored by countries like China.

On the other hand, we love the buying power that imports have afforded on products ranging from electronics and apparel to automobiles and, yes, furniture.

As the closest link to consumers, retailers large and small alike have fostered our penchant for imports by flooring a wide mix of products from China, Vietnam, Malaysia and other parts of the world. In fact, we can credit retailers as the driving force behind imports in the first place as their buying decisions have given consumers the power to choose between made in the U.S. and made just about everywhere else.

Note, too, that even made-in-the-U.S. products have some level of imported components, ranging from hardware and mechanisms to fabrics, leathers and even fancy-face veneers. It’s part of the global supply chain that speaks to the reality that not everything is made here in the U.S. And likewise, some imported furniture has U.S. components such as North American grown wood species such as oak, cherry and poplar to name a few.

While much of their products and components are made in the U.S., automakers understand this dynamic perhaps better than anyone because of the complexity of their global supply chain. Furniture, including upholstery and some case goods still made in the U.S., might even be a close second as it also relies on parts and components sourced around the globe.

So here we are once again facing import tariffs that aim to address a number of issues, ranging from trade deficits to illegal immigration and the threat of illegal drugs coming into the country, not to mention the promise of job creation from industries that left our shores decades ago to provide consumers with sharper prices on almost everything we purchase, again including furniture.

In fact, President Trump has said that tariffs will bring back furniture manufacturing jobs to places like North Carolina which lost thousands of jobs to China and Vietnam from the late 1990s through the mid-to-late 2000s.

Yet, while some jobs already have been and could continue to be created in the domestic furniture industry in and outside the state, it’s not likely going to be because of tariffs. In fact, tariffs may only make some domestic product slightly more competitive in price to other globally sourced products, whether it’s case goods or upholstery.

For instance, most fabric and leather upholstery made in North Carolina falls within middle to upper-end price points because of the quality of construction and quality of fabrics that go into the mix. Lower to middle-priced domestic upholstery — both stationary and motion — on the other hand, is largely still built in places like Mississippi. Even so it could be more expensive than similar product coming from China or Vietnam.

On the wood side, yes there is still some production in states such as North Carolina, Virginia, Wisconsin and West Virginia. This largely includes the value-added nature of finishing and final assembly of imported components, such as wood chair frames and table tops not to mention case pieces and bed panels, for example.

And some manufacturers such as Vaughan-Bassett, Gat Creek and Copeland also still produce their own wood components from North American wood species for use in finished furniture, as do Amish workshops around the Midwest.

In just about every case, be it upholstery or case goods, what’s finished and assembled and finally shipped out the door is typically a beautifully built product that holds up to the customers’ vision of made in America. But on the wood side in particular, which has borne the brunt of import-related job losses, this often comes at a high cost because of higher labor costs and health insurance, not to mention the rising cost of raw materials. The same is true in upholstery, although the highly custom nature of the business supports the pricing at the mid-to-upper price points.

That said, many of us would be proud to own an American-made piece of furniture from places like North Carolina, Mississippi, West Virginia, Virginia, Indiana, Illinois or Ohio, to name several.

But many simply can’t afford it. For that reason, imports continue to offer an attractive alternative that’s within our budget. And many of us have found the quality from China, Vietnam and even India is increasing by leaps and bounds, allowing beautiful furniture to be within our reach.

When a good friend in the industry once suggested years back that Fine Furniture Design was producing some of the best case goods in the business, my wife and I ended up buying one of the company’s China-made bedrooms. While not inexpensive, it was way more affordable (and of similar quality) than any of its American -made counterparts such as Thomasville and Pennsylvania House.

Over the years, consumers of bedroom, dining, living room and other furniture categories have likely experienced something similar. Indeed, some may have found the best value in an American-made bedroom or living room set. Others may have found the best value in a similar purchase from Vietnam, China, India or Indonesia.

Regardless, the wide selection from around the world has increased the buying power of consumers and helped us create beautiful homes in the process. Let’s hope that tariffs don’t limit our collective ability to do that now or in the future. At the rate the Trump administration is going, many, if not most, of us will see our buying power diminished in ways we never imagined.