Home furnishings retailers RH, Williams-Sonoma and Wayfair tumbled on Monday after President Donald Trump late Friday announced plans to impose tariffs on furniture imports.
"I am pleased to announce that we are doing a major Tariff Investigation on Furniture coming into the United States," Trump said in a post to his Truth Social account. "Within the next 50 days, that investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined. This will bring the Furniture Business back to North Carolina, South Carolina, Michigan and States all across the Union."
Furniture Losers, Winners
Luxury retailers led by RH, formerly known as Restoration Hardware, and Williams-Sonoma tumbled on Monday, as the companies rely heavily on imports. Wayfair, which provides a broader mix of price points but also depends on imports, also fell hard.
RH stock fell 5.3% Monday. Wayfair shares dropped 5.9%. WSM stock retreated about 2.7%.
China and Vietnam serve as major suppliers for Wayfair, and Williams-Sonoma imports many goods from Asia as well, according to reports.
RH in April announced that it had shifted a majority of its China production to Vietnam, and moved a "meaningful" amount of production from China to its factory in North Carolina. RH said that it has been operating with 25% tariffs from China since the prior Trump administration.
Tariffs on China and Vietnam already face duties of 10% and 20%, respectively, on imports following President Trump's April 2 "Liberation Day" announcement.
Furniture sellers La-Z-Boy and Ethan Allen ticked higher, as much of their manufacturing is located in the U.S.
La-Z-Boy has manufacturing plants in Tennessee, Missouri and Arkansas, as well as three in Mexico, according to Barron's. Ethan Allen has seven plants across the U.S., three in Mexico, and one in Honduras.
LZB stock inched higher Monday. ETD shares ticked up 0.3%.
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