by WASHINGTON — Earlier this week, President Donald Trump said the U.S. had reached a new trade deal with China whereby all Chinese imports will now face a 55% tariff, while American exports to that country will be subject to a 10% tariff.
Speaking to reporters in Washington, Trump said, “We made a great deal with China. We’re very happy with it. We have everything we need, and we’re going to do very well with it. And hopefully they are, too.”
The president reiterated the announcement on Truth Social that a new U.S.-China trade deal was “done.”
However, the agreement still needs final approval from President Trump and China’s President Xi Jinping.
As part of the agreement, China will provide rare earth materials, magnets and components up front, which are essential to the manufacture of high-tech furniture, adjustable mechanisms, lighting systems and precision tools used in numerous factories.
But while President Trump has stated this agreement as a “done deal,” Chinese officials have been less emphatic calling the negotiations, which were held in London, more of a “first meeting” and further described it as a framework versus a finalized deal.
Should the deal come to fruition as outlined by President Trump, there could be ramifications for the furniture sector.
+ Material Access: The possible resumption of stable rare earth exports is a major win for furniture manufacturers, particularly those producing motorized or tech-integrated furniture that relies on rare earth magnets and components.
+ Tariff Pressure: If 55% U.S. tariffs hold, importers of Chinese-made furniture and components could face significant cost increases — unless exemptions or specific product carve-outs are negotiated.
+ Supply Chain Confidence: Even a tentative framework eases some market anxiety and allows manufacturers to plan sourcing strategies more confidently for the second half of the year.
+ Outlook: Until final approval is secured, the industry should remain cautious. A signed, enforceable deal would offer the clearest signal for cost and supply chain stability going forward.
