Key takeaways

• Planned tariff increases on furniture up to 50% and cabinets up to 30% are delayed until at least 2027.
• Furniture prices rose 4.6% year over year, outpacing overall inflation.
• Move follows other tariff reductions on food staples in November.

The U.S. delayed planned tariff increases on imports of upholstered furniture, kitchen cabinets, and vanities until at least 2027, keeping the tariff rate at 25% as trade negotiations continue. The move offers short-term relief to retailers and buyers, even as furniture prices remain elevated, rising 4.6% year over year.

The U.S. is delaying higher tariffs on upholstered furniture, kitchen cabinets, and vanities for at least one year, offering relief to consumers and retailers facing price increases that have outpaced inflation.¹

The U.S. imposed a 25% tariff on upholstered furniture, kitchen cabinets and vanities in October, with increases originally slated to take effect in early 2026. The planned hikes — an additional 25% for cabinets and vanities for a total of 50% and another 5% for upholstered sofas and chairs to 30% — have now been postponed until at least 2027.²

The tariff level will now remain at 25% for all the furniture and cabinet items, according to a White House statement published December31, as the U.S. continues negotiations with U.S. trading partners in Asia and elsewhere.³

The U.S. imported $6.4 billion in 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.⁴

The move to delay additional tariffs was welcomed by furniture industry and retailers, which were forced to adjust their sourcing strategies — and increase prices on some products — after the initial 25% duties.⁵ Impacted companies include Lazy Boy, Wayfair, Lovesac, and Arhaus, and Restoration Hardware parent RH.⁶

Not all countries faced 25% tariffs. Under 2025  trade agreements, tariffs on wood products and furniture from Britain were capped at 10%, while imports from the European Union and Japan had duties no higher than 15%.⁷

Read more: Tariffs on wood and furniture imports could hit home

Furniture inflation outpaces broader prices

Consumers have felt the price impacts. The latest Consumer Price Index revealed a 4.6% increase in living room, kitchen, and dining room furniture in November compared to one year earlier.⁸ Overall prices in the CPI increased 2.7% during that same period.

The December 31 move to suspend further tariffs on furniture and cabinets followed a round of tariff rollbacks in November on items such as beef, coffee, cocoa, bananas, and dozens of other agricultural goods.⁹

Some trade policy analysts are watching for potential targeted tariff reductions in other areas — especially those important to consumers. Clothing and apparel, footwear, electronics, and pharmaceuticals are some of areas being watched for possible moves.¹⁰ 

Read more: CPI update: Inflation cooled in November, but grocery prices are up

Housing headwinds and opportunities in 2026 

Housing has been front and center of the affordability conversation, with builders, contractors, homeowners, and potential buyers feeling tariff impacts in 2025.

In addition to the 25% duties on furniture and cabinets, the U.S. imposed a 10% tariff on imported softwood lumber and timber in October, adding to existing country-specific tariffs. Canada, the largest supplier of U.S. lumber, was already facing tariffs of roughly 35%.

Wood and other framing costs such as steel and metals averaged about $70,982 for new single-family homes in 2024, about 16.6% of total construction costs, according to the National Association of Home Builders. Cabinets and countertops averaged $19,056 per home, representing about 4.5% of the total.¹¹

A recent study by the Brookings Institution estimated that current tariffs on building materials, furnishings, appliances and related goods will add roughly $30 billion to construction and renovation costs for new and existing homes by 2027.¹²

But there have been some recent bright spots for buyers. Builders have responded to higher costs by pulling back on new construction while focusing on selling completed inventory, often offering buyers mortgage rate buydowns, cash for closing costs, and other incentives.¹³

New homes have emerged as a more affordable option, with the price per square foot of new construction falling at or below that of existing homes in some markets.

Declining mortgage rates have also provided relief. The average rate on a 30-year fixed mortgage had fallen to 6.16% as of January 8, helping support demand across housing types.¹⁴

Pending home sales also rose 3.3% in November from the prior month and were up 2.6% year over year, suggesting buyer momentum may be building despite the headwinds in other areas.¹⁵

Read more: All things equal? Why new home prices are nearly the same as existing homes