By Nicholas G. Miller

President Trump's promise to impose new tariffs on imported furniture sparked concern among investors of most furniture companies--but not La-Z-Boy.

Trump said late Thursday he would slap a 30% tariff on upholstered furniture, but La-Z-Boy shares rose as high as 4.7% in early trading Friday before paring back gains.

The company produces most of its upholstered furniture in the U.S., while other furniture companies rely on imports from Vietnam, China, Malaysia and Indonesia. That could help La-Z-Boy increase sales if its competitors are forced to raise prices to offset tariff costs.

"The vast majority of our product is manufactured here in North America, so we're not as impacted by tariffs. That plays well for us," La-Z-Boy Chief Executive Melinda Whittington said during the company's earnings call last month.

President Trump said in August that the government was investigating furniture imported into the U.S. and would assess levies "at a rate yet to be determined." The White House later clarified that furniture was already part of a continued investigation into imports of timber, lumber and their derivative products, which includes furniture and cabinetry.

Analysts have said the furniture industry could struggle to cope with tariffs, more so than other industries. Furniture manufacturing capacity in the U.S. is limited, meaning companies will have challenges moving production on-shore. Most furniture purchases also are discretionary and as a result, companies could suffer from consumers delaying their purchases if prices go up.

But La-Z-Boy said last month that 90% of its upholstered units sold in North America are produced in the U.S., with its Mexico operations compliant with the U.S.-Mexico-Canada trade agreement supplying most of the rest. "We have been able to navigate the current trade and tariff situation through strategic inventory moves, sourcing adjustments, vendor diversification and nominal pricing actions," Chief Financial Officer Taylor Luebke said last month.

Other furniture companies like Williams-Sonoma and RH fell in early trading Friday.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

September 26, 2025 10:41 ET (14:41 GMT)

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