Shares of retailers Williams-Sonoma (WSM.N) and Wayfair (W.N), fell on Friday after President Donald Trump unveiled tariffs on furniture imports, while those of La-Z-Boy (LZB.N) and Ethan Allen , which manufacture largely in the U.S., gained.
As part of his latest tariff onslaught, Trump announced a 50% tariff on imported kitchen cabinets and vanities, along with a 30% levy on upholstered furniture, which are set to take effect on October 1.
Shares of online retailer Wayfair, which relies heavily on imports from China and Vietnam, were down 1% in early trading on Friday after falling about 6% premarket, while those of Pottery Barn-owner Williams-Sonoma were down 2%.
Luxury retailer RH's stock (RH.N) was also down nearly 2%. The company, formerly known as Restoration Hardware, also sources a significant portion of its products from overseas like the others.
In contrast, shares of La-Z-Boy gained about 3%, while Ethan Allen Interiors was up 1.4%.
"La-Z-Boy and Ethan Allen could benefit if they are able to hold pricing while others raise prices, and because of potentially better availability of products," Michael Gunther, vice president, head of insights at consumer edge, said.
Prices for everything from clothes to TVs have gone up in recent months as manufacturers and retailers struggle with the ever-changing tariff environment while also trying to offset rising commodity and supply chain costs.
"Tariffs take time to trickle down to consumers. Most holiday goods will be imported before October 1, so the new duties are unlikely to dent sales. But they add another hurdle for home improvement and home furnishings retailers, already grappling with a stagnant housing market," eMarketer's Zak Stambor said.
Telsey Advisory Group's Cristina Fernández also said that they expect companies to pass through prices to consumers in 2026 to offset the tariffs.
The Trump administration had warned of potential duties in August after saying it would conduct tariff investigation on furniture entering the United States.
Since then, the CEOs of Williams-Sonoma and RH have raised concerns about the tariffs and the companies' inability to bring back production back to the United States in a short period of time.
"There aren't the factories available to do a lot of production," Williams-Sonoma CEO Laura Alber said on a post earnings call last month.
The company made about 18% of its products in the U.S. as of fiscal 2024.
Scaling up domestic production "would require years of investments in building the facilities and workforce that most in this industry cannot afford to make," RH CEO Gary Friedman said earlier this month.
Wayfair, Williams-Sonoma, La-Z-Boy, Ethan Allen and RH did not immediately respond to requests for comment.
