Key takeaways 

• The U.S. has imposed new tariffs of 10–25% on imported wood, furniture, and cabinetry
• Retailers are adjusting both pricing and production to offset import expenses
• Some consumers are buying sooner; others can expand shopping options to keep pace

New tariffs of 10–25% on imported wood, furniture, and cabinetry are now in effect, with potential increases January 1. The moves impact homebuilding and furnishing costs, especially products sourced from countries including Canada, Vietnam, and China.

New U.S. tariffs on wood and related goods like furniture, cabinets, and vanities could make home projects and furnishings more expensive for consumers as retailers adjust to higher and prolonged import costs.¹

New duties took effect on October 14, adding to existing tariffs, and some retailers may be less willing or able to absorb the extra costs.² IKEA recently started raising prices on some products — after years of lowering them to attract shoppers during high inflation.³ 

The latest tariffs start at 10% and could go to 50% depending on the outcome of ongoing trade talks.⁴ They include:

• A 10% duty on imported wood and timber, much of it sourced from Canada.
• 25% tariffs on imported sofas, chairs, and other upholstered furniture, with a planned bump to 30% on January 1.
• 25% tariffs on imported kitchen cabinets and bathroom vanities, which would go to 50% on January 1.

Tariffs stack up inside the home and out 

Some of the new tariffs layer on top of existing duties. Canada, which accounts for about 70% of all imported softwood lumber used in U.S. homebuilding, was already subject to 35% tariffs.⁵ 

The additional 10% duty brings those Canadian wood imports to a 45% rate and could add roughly $2,200 to the cost of building an average-size home.⁶

Inside those homes, kitchen cabinets, bathroom vanities, chairs, couches, and other furniture  could all become more expensive if 25% import duties are passed along to shoppers.

Furniture prices were on the rise before the new tariffs took effect. The latest CPI from August showed a 9.5% increase in living room, kitchen, and dining room furniture over the past 12 months.⁷

The U.S. imported $6.4 billion worth of upholstered furniture in 2024, with roughly 75% coming from Vietnam and China. Vietnam accounted for about $3.1 billion, while $1.75 billion came from China. The U.S. also imported $2.2 billion in wood cabinets and countertops in 2024, with Vietnam supplying $922 million of that total.⁸

Cabinets account for 30% of most kitchen remodels, which average $26,969, according to Home Advisor. But costs vary widely depending on project size, labor hours and rates, and the materials used.⁹

The good news for consumers is that some imports won’t face the 25% rates. Under recent trade agreements, tariffs on wood products and furniture from Britain are capped at 10%, while imports from the European Union and Japan will face duties no higher than 15%.¹⁰

Read more: Renovation rebound: Home remodeling is on the rise

Supply chains top of mind for CEOS as tariffs broaden 

The recent wood and furniture tariffs were announced alongside other duties on medications and heavy-duty trucks.¹¹ They also follow a broad range of earlier measures on specific countries, goods, and materials like steel and aluminum.¹²

Companies and suppliers have shouldered much but not all tariff costs to date.¹³ A study from the Federal Reserve Bank of St. Louis found that consumer price increases for durable goods like vehicles, electronics, and furniture have aligned with tariff hikes.¹⁴

Retailers are likely to resist major price increases during the holiday season, but analysts don’t expect them to fully absorb the newer tariffs on top of those already in place.¹⁵

IKEA imports about 85% of the goods sold in its U.S. stores. It’s raised prices on select items like sofas and bedroom sets, while exploring U.S. production for other goods like mattresses. But the retailer is keeping prices steady on bookshelves and other products, citing supply-chain efficiencies in Europe and other regions that offset the new tariffs.¹⁶

Ethan Allen expects to be less affected by tariffs. About half of its furniture is made in the U.S., with facilities in Vermont and North Carolina, with much of the rest coming from Mexico and Honduras.¹⁷

Many other brands like Ashley Furniture, Bassett Furniture, and Thomasville Furniture make much of their furniture in the U.S.¹⁸ Even so, tariffs can raise costs for imported materials and components like fabrics and plywood.¹⁹

A new KPMG survey of 400 U.S. CEOs underscores how closely business leaders are watching tariffs. Supply chain resilience ranked as the top factor shaping short-term business decisions — ahead of cybersecurity, the global economy, and AI adoption. Some 85% of leaders plan to adjust sourcing strategies to limit tariff exposure, while 86% said they would raise prices if necessary.²⁰

Still, big structural changes take time. RH, the parent of Restoration Hardware, said that manufacturing high-quality wood and metal furniture domestically would require years of investment in new facilities and skilled labor. The company also expects about $30 million in tariff-related expenses during the second half of 2025.²¹

How consumers can stay ahead of tariffs 

Empower research shows that 29% of Americans dreamscroll for furniture and home décor they’d like to own.

Those ready to buy can take steps to mitigate any price jumps, including checking the label or tag on a product to see where it was manufactured. Perhaps as important is whether a product is in stock and available for quick delivery.²²

With suppliers reconsidering manufacturing locations, shipping delays and longer lead times can become more common. Homeowners planning remodels can place deposits early to lock in prices on items like imported cabinets. ²³

More than three-quarters of consumers in the market for new sofas, chairs and other furniture were aware of potential price impacts even before the latest tariffs were announced, according to a survey by Furniture Today. ²⁴

About 22% plan to buy sooner to avoid any price hikes, while 30% said they might delay purchases to see where prices land. Another 25% said they would expand the number of brands and retailers they shop, while 23% said tariffs won’t affect planned purchases. ²⁵

Consumers may find that timing, flexibility, and some advance planning can help them keep pace with changing costs.

Read more: Brand loyalty is shifting as value takes the lead