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How global trade is reshaping furniture pieces

Carved wooden parts of a furniture set lined for production.
chinahbzyg // Shutterstock

How global trade is reshaping furniture pieces

Global trade has transformed the furniture industry, changing where our tables, sofas, and décor come from—and at what cost. In particular, U.S.-Asia trade routes now dominate the furniture market, with Asian countries supplying a large share of American furniture. Recent shifts in tariffs and trade policies are accelerating these changes, affecting prices and the balance between imported and American-made furnishings. Below, House of Leon explores how these trends are reshaping furniture pieces in your home.

Global trade has transformed the furniture industry, changing where our tables, sofas, and décor come from—and at what cost. In particular, U.S.-Asia trade routes now dominate the furniture market, with Asian countries supplying a large share of American furniture. Recent shifts in tariffs and trade policies are accelerating these changes, affecting prices and the balance between imported and American-made furnishings. Below, House of Leon explores how these trends are reshaping furniture pieces in your home.

 

 

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Asia's Growing Role in Furniture Supply

Asian exporters now dominate U.S. furniture imports. About two-thirds of all American furniture imports come from Asia. China used to be the unrivaled leader—before the U.S.-China trade war, China supplied over half of U.S. furniture imports . But in recent years, other Asian nations, especially Vietnam, have stepped up. Vietnam's furniture exports to the U.S. surged from about $4.2 billion in 2018 to $7.4 billion in 2020, even briefly overtaking China as the top exporter.

 

China's share of U.S. furniture imports fell from over 50% in 2017 to roughly 29% by 2023, while Vietnam's share jumped from under 20% to about 26% in that period.

 

This dramatic shift is a direct result of global trade dynamics. China's share of U.S. furniture imports has dropped from 57% to roughly 36% in the past few years, as U.S. companies moved sourcing elsewhere. Much of the new sourcing has come from Vietnam. By 2023, China and Vietnam were nearly neck-and-neck—China accounted for about 28%-29% of U.S. furniture imports, and Vietnam about 26%. Other countries like Mexico, Malaysia, and Indonesia also supply a significant (and growing) portion of U.S. furniture. This diversification means your "made in _____" furniture tag is now more likely to read Vietnam, Indonesia, or Mexico than it was a decade ago.

 

Why Asia? Cost is a big factor. Asian manufacturers offer lower production and labor costs, which translates into cheaper furniture for consumers. Many U.S. furniture companies shifted production overseas in the 2000s to take advantage of these savings. For example, Vietnam's rise began with wooden bedroom furniture in the 2000s (after Chinese-made bedroom pieces were hit with U.S. anti-dumping duties). Over time, Asian factories built up expertise in everything from wood dressers to upholstered sofas. The result has been a global supply chain where a dining table designed in California might be built in Vietnam with wood from Southeast Asia, then shipped to U.S. stores.

 

Trade Tensions and New Tariffs Shake the Industry

While global supply lines were shifting gradually, trade tensions in recent years gave them an extra shove. The U.S.-China trade war that began in 2018 placed hefty tariffs on Chinese furniture imports, prompting U.S. importers to seek alternatives. Starting in 2018, the U.S. imposed tariffs of 10%-25% on a broad range of Chinese goods, including many furniture categories. (China retaliated with its own tariffs, but those mainly hurt other industries; for furniture, the critical impact was on U.S. importers facing higher costs for Chinese-made pieces.)

 

Fast forward to today: A new wave of tariffs is poised to reshape the market yet again. In early 2025, the U.S. announced sweeping "reciprocal" tariffs aimed at many countries. Notably, all imports now face a baseline 10% tariff, and imports from China face a stunning 145% duty in total. (That 145% includes earlier tariffs plus new increases.) In effect, furniture from China has become drastically more expensive for U.S. buyers—a potential game-changer for retailers who still source from China. One trade economist warned that a 145% tariff on Chinese imports would essentially stop most U.S.-China furniture trade.

 

Other countries are not entirely off the hook either. The U.S. had threatened steep tariffs on Vietnam (reportedly as high as 46%, Thailand (~36%), and some European goods. However, these country-specific tariffs have been put on hold for 90 days to allow negotiations. During this 90-day pause (through early July 2025), importers will pay the 10% general tariff but not the higher country-specific rates (except for China, where the 125% hike took effect immediately). Furniture retailers are watching this deadline closely. "Nobody knows ... if it's going to stay at 10% in the case of Vietnam, or go back to 46%," one industry CEO said. "We have to take a wait-and-see approach."

 

Tariff Timeline: How did we get here? Here's a quick rundown of recent tariff changes and their effects:

 

  • Pre-2018: Most furniture imports carried only standard import duties (often low single-digits or duty-free). Global sourcing was driven by cost, not policy.
  • 2018–2019 (Trade War): The U.S. imposed 25% tariffs on most Chinese furniture imports. Chinese-made furniture suddenly cost more, squeezing U.S. importers' margins or forcing price hikes. Many companies shifted orders to factories in Vietnam, Malaysia, and elsewhere to avoid tariffs. China's furniture exports to the U.S. plunged (one analysis found U.S. imports from China of tariffed furniture remained 21% lower, while imports from the rest of the world jumped 87% in the same period.
  • 2020–2021: A partial U.S.-China deal left 25% tariffs in place on most furniture, though a few categories saw tariffs trimmed to 7.5%. Despite tariffs, a pandemic home-improvement boom caused overall furniture demand to soar, and Asian suppliers (outside China) benefited most. Vietnam's market share grew rapidly as it absorbed orders formerly going to China.
  • 2025 (New Tariffs): The U.S. announces a 10% tariff on all imports and a punitive 125% hike on Chinese goods (bringing China's effective rate to 145%). Tariffs of 20%-50% were also slated for other countries (e.g., Vietnam at 46%), but these extra tariffs (except on China) are in a temporary 90-day pause. If talks fail, those tariffs could snap into effect in July, potentially raising prices on Vietnamese and other imported furniture overnight.

 

These trade-policy moves are reshaping supply chains. Already, importers are re-routing orders to whichever country isn't hit by tariffs. A major U.S. furniture distributor noted they shifted all remaining production out of China to Vietnam as soon as the 20% February tariff on China was announced. Now, with Vietnam itself under the tariff gun (possibly 46%), companies are considering other options—from moving production to countries like Indonesia or India, to even bringing some manufacturing back to the U.S. or Mexico.

 

Furniture retailers, meanwhile, are trying to hedge against uncertainty. At spring 2025's High Point furniture market (the industry's biggest trade show), many buyers said they would hold off committing to new products until it's clear what tariffs will finally apply. And virtually no retailer is ordering new product from China at the moment—the risk of a 145% duty makes it "not feasible" to buy Chinese goods, as one executive flatly stated. Many have already canceled orders from China or put them on hold, awaiting clarity or alternative sources.

 

American-Made vs. Imported: Which Is More Affordable?

One big question for consumers is how these global shifts affect the price tags on furniture. Historically, imported furniture has been more affordable than American-made furniture, thanks to lower labor costs abroad. For example, workers in furniture factories in parts of Asia earn a fraction of U.S. wages, and production facilities can be operated more cheaply, resulting in lower prices on the shelf. Before the recent trade disruptions, this global cost gap was only growing—even after accounting for shipping, imported goods often had a pricing edge over domestically made items. In fact, in the past couple of years U.S. manufacturing costs have kept rising (driven by spikes in materials like steel), while overseas production costs actually eased as supply chains normalized post-pandemic. This divergence "compounds the materials cost gap" between U.S.-made and imported furniture.

 

What does that mean in practical terms? It means that a wood dining table made in North Carolina might cost appreciably more than a similar table made in Vietnam or Mexico. Manufacturers say "Made in America" furniture is great for quality and quick supply, but comes with higher costs—so much so that it can feel like "a weighted chain dragging on the sector's feet," as a furniture industry analyst put it bluntly. Even domestic companies acknowledge this. "If we had to, we could live totally domestically [for sourcing]. And we would still be in business," said one U.S. retailer, "but … customers can still get [imports] at competitive prices". In other words, American-made pieces would likely cost shoppers more, and in a price-sensitive market that's a hard sell.

 

However, the new tariffs are narrowing that gap—or even flipping the script for Chinese-made goods. A sofa imported from China that used to cost $1,000 could theoretically cost $2,450 after a 145% tariff, far above the price of a comparable U.S.-made sofa. Even if importers shift to tariff-free countries, the across-the-board 10% U.S. import tariff (if it remains in effect) will add some cost to all imported furniture. Industry insiders say if tariffs stay high, certain imported items will become "less competitive" on price, and retailers will adapt by sourcing more domestically or from nearby countries to keep costs down. In fact, some U.S. furniture factories are fielding new inquiries from retailers who historically relied on imports. Domestic producers say they're ready to take on more orders—"should demand increase for U.S.-made products"—but they caution they can't replace all the lost imports overnight. After decades of offshoring, the U.S. has far fewer large furniture plants and workers than it used to, so ramping up production will take time and investment.

 

Impact on Consumers and the Market

For consumers, these global trade shifts have a direct impact: They influence the prices and availability of furniture in stores. So far, the impact has been mixed. On one hand, globalization has made many furniture pieces more affordable over the past 20 years—your budget-friendly IKEA bookcase or Wayfair desk is likely inexpensive because it's made in a low-cost country. On the other hand, supply chain tangles (like the pandemic shipping crisis) and tariffs have added new costs. U.S. furniture prices rose significantly during 2021-2022 due to higher raw material and shipping costs. By early 2023 those pressures eased, and import prices for furniture even dipped a bit. Now tariffs risk adding new inflationary pressure.

 

Retailers are trying to soften the blow for shoppers. Many large chains have been running "pre-tariff" sales to encourage customers to buy before higher prices hit. For instance, one major East Coast furniture chain put a banner on its website urging customers to "lock in pre-tariff pricing." A few companies have even added temporary "tariff surcharges" at checkout to transparently show customers why prices might be higher. The idea is to say, "look, this extra cost is due to tariffs, not an arbitrary markup." Retailers know that after years of general inflation, consumers are extremely price-sensitive and deal-conscious. Any sudden price jump could hit demand hard, so the industry is bracing and strategizing.

 

The bottom line for shoppers: In the short term, if you're in the market for furniture, you might see some great sales right now—and it might not be a bad idea to take advantage. Many sellers are clearing out inventory at current prices. Over the coming months, the outcome of U.S. trade negotiations will play a big role in where prices go. If most tariffs are lifted or paused, import prices could stay relatively stable (and imports from Asia will continue flowing). If the high tariffs stick, expect to see more Made in USA or Made in Mexico labels, longer wait times on some items, and potentially higher price tags—especially on goods that were heavily sourced from China.

 

One thing is clear: Global trade is reshaping the furniture in our living rooms and offices, from the economics to the supply routes. The U.S. furniture industry is adapting to a new era of tariffs and diversified sourcing. In the long run, this could mean a more resilient but slightly more expensive supply chain. In the meantime, consumers and companies alike will be watching trade policy updates as closely as the latest design trends—because a simple policy decision can change the cost of your couch by hundreds of dollars.

 

This story was produced by House of Leon and reviewed and distributed by Stacker.

Sources:

By Steven Neman

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