by As tariffs remain in effect pending further court review, the adjustments range from surcharges to price increases
HIGH POINT — A number of upper-middle to upper-end furniture resources have alerted customers to upcoming tariff-related price adjustments taking effect before or around the time that final tariffs are announced.
Companies communicated this to customers before news reports Wednesday that the U.S. Court of International Trade issued a ruling blocking the tariffs. The ruling said the president overstepped his authority in imposing unlimited tariffs on most major countries in the world earlier this year.
However, an appeals court reinstated the tariffs on Thursday, pending a review of written responses from the plaintiffs and the U.S. government due in early June.
As the tariffs remain in effect, the price adjustments range from surcharges to increases on a portion of the line most susceptible to tariffs, including those facing 30% rates on products imported from China.
Case goods resource Furniture Classics recently told dealers that it has delayed imposing tariff surcharges in order to mitigate cost impacts on its customers. However, effective June 1, it is implementing what it described as a nominal price increase across its line, with the average price increase being just under 3%.
The company added that it is not imposing any tariff surcharges at this time.
“The ever-changing tariff environment has, no doubt, created unprecedented challenges for all of us, but we want you to know that your partnership is always at the forefront of all our choices,” the company said in a letter to customers issued in late May. “We believe that transparency is so important in maintaining your trust, and as such, we want to share as much information as we can regarding our decisions.
“We will continue to monitor tariff changes and, just as we have done in the past, we will assess and adjust pricing down if the environment allows.”
Upholstery and wood furniture producer Chaddock, which produces 90% of its line in Morganton, North Carolina, said it is implementing a 3% increase across its product line effective June 16. All new product introductions from April, it noted, will remain at their current pricing and existing in-house orders will remain at the pricing that was in place at the time of order acknowledgement.
“As we shared last month, recent changes to U.S. tariff policy and continued increases in the cost of sourced materials — including fabrics, metal, rush seating and caning — have impacted a portion of our product assortment,” CEO Andrew Crone told customers May 19. “While we have worked hard to absorb many of these costs through our lean manufacturing efforts, we must now make a modest adjustment to remain responsive to these pressures.”
The tariffs do not appear to be impacting its lead times, which remain as little as two to three weeks for custom upholstery and eight weeks for custom case goods.
For many domestic upholstery producers, China tariffs are impacting their use of fabrics from certain countries such as China, which was initially targeted with a 145% tariff that has since been lowered to 30% for a 30-day period that ends in early August.
Upholstery manufacturer Taylor King told its customers in mid-May that the U.S. government’s 90-day pause that lowered China tariffs confirmed its decision to postpone a last-minute price increase and grade change related to fabrics.
“The bad news is, this gives us no more certainty regarding vendor pricing and tariffs than we had before,” said company President Nicole Rogers Bailey, of the situation long term. “President Trump was quoted as saying he believes the tariff should settle somewhere much higher than the 30%.”
She said that, at this time, the baseline tariff surcharge of 4% will not go away until a “price increase is complete and our 2025 price list is finalized.”
She added that if customers “have already chosen a non-China fabric because of prior tariffs, this should not affect any of those orders.”
And all orders dated May 12 and after will be subject to a baseline 4% tariff surcharge on the total before-tariff price. Also, any furniture or parts orders received May 12 or after are subject to an additional 4% added to the baseline 4% for a total 8% increase.
In addition, the company said that cut yardage orders for non-China fabric will remain at current grade plus $6 and cut yardage orders for China fabric orders will be at current grade plus $15.
And on May 28, Kravet announced that effective July 9, it is imposing a 3% surcharge on imported products, including those from China that applies to orders placed on or after that date. This surcharge will appear as a separate line item in its invoices.
It also said that there will be no surcharges on any of its furniture, some 98% of which is made in the U.S.
Items in the line impacted by surcharges include imported fabric, wall coverings, lighting, carpet and other décor. Should those tariffs vary from where they are currently, the company said it will have the ability to adjust the surcharge up or down by country of origin.
Home News Now has reached out to these companies for additional comment and is still awaiting a response.
