Introduction to New Tariffs
President Donald Trump announced on Friday that he will show his government to examine furniture imported to the United States that will lead to higher tariffs by October.
Details of the Investigation
The investigations will be completed within the next 50 days, and furniture from other countries to the United States will be jagged with a rate that is still to be determined. This information was shared by Trump in a social post.
Expected Outcomes
According to Trump, this move will bring the furniture store back to North Carolina, South Carolina, Michigan, and states throughout the Union. The examination takes place when the Trump administration thinks a higher level of tariff for imported goods such as copper, semiconductor, and pharmaceuticals is necessary.
Impact on Furniture Prices
Furniture prices have already increased in recent months when Trump migrated to the tariffs in countries such as China and Vietnam, the two best sources for imported furniture. Both countries imported furniture and devices worth 12 billion US dollars last year, according to the data from the US trade department.
Consumer Price Index
Furniture and bed linen prices, an overarching category the consumer price index traces, rose by 0.4% in June and 0.9% in July after prices have been largely deflationary in the past two and a half years.
Category-Specific Spikes
Other furniture, including the office, relaxation, and terrace, saw the largest spikes since May. Prices rose by 1.5% in May, 1.6% in June, and 1.5% in July. As with most goods, these categories fell all the more, if not more, after decrypting of pandemic nesting trends.
Market Reaction
Furniture stocks such as Wayfair, William Sonoma, and Restoration Hardware saw a big day of profits at the stock markets after the chairman of the Federal Reserve, Jerome Powell, came up with a big day of the interest rate.
Update
This is a developing story and is updated.
