By Sarah Nassauer and Inti Pacheco

More tariffs could be coming for U.S. furniture sellers.

President Trump said Friday on social media the federal government was investigating furniture imported to the U.S. and that within the next 50 days the investigation would be completed. Tariffs could come " at a rate yet to be determined," he said. The news sent stocks of several major furniture companies, including Restoration Hardware and Wayfair, down in Monday trading as much of the furniture sold in the U.S. is imported.

On Monday a White House spokesman clarified that the investigation isn't new. Furniture is already part of an ongoing investigation into imports of timber, lumber and their derivative products, including furniture and cabinetry the White House announced March 1. Furniture is considered a derivative product of lumber, the spokesman said.

Some industry groups expected to hear about the results of that investigation this week, but no recommendations have been issued by the Commerce secretary. The groups said it is unclear whether Trump's online post meant that the investigation will continue for longer than expected.

"This is all speculation until we actually release paper breaking down what's being tariffed and to what extent," said the spokesman.

Shares of Restoration Hardware's parent company RH closed down 5.3% and Wayfair closed down 5.9% on Monday. Williams-Sonoma, which controls several furniture brands including Pottery Barn and West Elm, closed down 2.7%. Other companies that manufacture significant portions of their couches and chairs in the U.S. got a boost. Ethan Allen and La-Z-Boy stocks nudged higher, albeit by less than 1%.

Wayfair has said that tariffs haven't greatly affected prices of the furniture it sells. That is in part because Wayfair doesn't own much of the inventory sold through its websites so it isn't responsible for importing that inventory or setting prices.

"The marketplace forces of our inventory-light model give us unmatched flexibility," Chief Executive Niraj Shah said earlier this month on a call with investors and analysts. A network of over 20,000 suppliers creates "constant competition to present the strongest value to the customer," he added.

"We continue to monitor the evolving trade landscape and remain confident in our ability to adapt as needed," a Wayfair spokeswoman said Monday.

Restoration Hardware didn't respond to a request for comment. Williams-Sonoma didn't immediately respond to a request for comment.

Across the retail landscape, companies have mostly offset existing tariffs by moving production to countries with lower tariff rates, negotiating with suppliers, reducing costs elsewhere and raising prices. Some, including Walmart and Target, have said tariff costs will continue to increase later this year as more goods affected by the additional levies hit ports and, eventually, shelves.

Furniture may be especially vulnerable to higher tariffs, as much sold in the U.S. is imported, it's generally a higher-cost category of goods and many purchases can be put off until later. That means shoppers could forgo buying new furniture if prices rise significantly or consumers become more cautious overall. But the industry has already moved some production out of China and into the U.S. as tariffs on Chinese goods ramped up in recent years under Trump's first term.

In 2020, about 70% of all household furniture sold in the U.S. was imported, a report from the American Home Furnishings Alliance said. Furniture from countries like Vietnam, Cambodia, Malaysia and Indonesia have increasingly become a larger share of imports. Collectively, furniture imports from those countries jumped to $15.4 billion last year, up from $4.6 billion in 2014, while furniture from China fell, according to data from the Census Bureau.

In June, about $450 million of furniture came into the U.S. from China, the lowest amount in over two decades. In his social-media post, Trump said an additional tariff on imported furniture would bring the furniture business back to the U.S. in states like South Carolina, North Carolina and Michigan.

Furniture sellers say that transition is already in motion. Restoration Hardware's parent company will source around 2% of its goods from China by the end of this year, down from around 16% at the start of the year, Chief Executive Gary Friedman said in June. By the end of 2025, more than half of its upholstered furniture will be produced in the U.S., mainly in North Carolina, and 21% will come from Italy, he said.

"It's kind of chaotic and unpredictable," he said of the tariff environment on a June call to discuss earnings. But, he added, "we have proven we are well positioned to compete favorably in any market conditions."

Smaller furniture sellers have said tariff-related price increases have already damped sales.

In July, Bassett Furniture Chief Executive Rob Spilman said the company had raised wholesale prices up to 5% despite manufacturing or assembling about 80% of its shipments in the U.S. The price hikes were in response to tariffs on the materials it buys from Vietnam and India, including fabrics, plywood and other finished goods.

Reciprocal tariffs announced in April led to a direct demarcation between a "more robust order pace at the beginning of the year and the slowness we clearly saw in the second quarter," Spilman said on a call earlier this year to discuss earnings.

Write to Sarah Nassauer at Sarah.Nassauer@wsj.com and Inti Pacheco at inti.pacheco@wsj.com

(END) Dow Jones Newswires

August 25, 2025 17:58 ET (21:58 GMT)

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