Furniture Tariffs: How They Are Affecting Furniture Prices

A 25 percent Section 232 tariff on imported upholstered furniture has been in effect since October 14, 2025, under a White House proclamation signed September 29, 2025. A scheduled increase to 30 percent on sofas and 50 percent on kitchen cabinets was delayed to January 1, 2027. Living room and dining room furniture prices peaked at 9.5 percent year over year in August 2025 as retailers pre-priced the October tariff, before moderating to 1.1 percent as of July 2026 (Bureau of Labor Statistics).

Key Takeaways

• 25% tariff on imported upholstered furniture in effect since October 14, 2025; next increase (to 30%) scheduled for January 1, 2027 (Global Affairs Canada).

• Kitchen cabinets and vanities carry the same 25% rate, with a potential jump to 50% also scheduled for January 1, 2027 (Global Affairs Canada).

• Softwood lumber faces a 10% Section 232 tariff from October 14, 2025, stacked on existing Canadian countervailing duties (A.N. Deringer).

• Furniture from China carries an additional 25% Section 301 layer, bringing the effective rate to approximately 50% on most finished pieces (USTR).

• Living room and dining room furniture prices peaked at 9.5% year over year in August 2025 and have since moderated to 1.1% as of July 2026 (BLS).

Which Furniture Tariffs Are in Effect Now

Yes, furniture tariffs are active. President Trump signed Proclamation 10976 on September 29, 2025, invoking Section 232 of the Trade Expansion Act of 1962. Duties took effect on October 14, 2025, and cover upholstered wooden furniture, kitchen cabinets, vanities, softwood timber, and lumber. A second proclamation signed December 31, 2025, delayed a larger round of rate increases until January 1, 2027, leaving the current 25% level in place through the end of 2026 (White House fact sheet; NAHB). These Section 232 duties run alongside, not instead of, any existing Section 301 tariffs on Chinese-origin goods, meaning Chinese furniture faces both stacks simultaneously.

Current Tariff Rates on Furniture, Cabinets & Lumber

Understanding the Cost Impact

• Component Cost Inflation: Domestic manufacturers who assemble furniture in the US still rely on imported foam, upholstery fabrics, drawer slides, and hardware from Asia, raising production costs across domestic lines. Foam prices rose in the 12–22% range in early 2026, varying by supplier (Beloit Mattress, 2026).

• Consumer Absorption: Goldman Sachs estimates US consumers currently absorb approximately 37% of total tariff costs at import, rising to 55–70% as pricing cycles through retail distribution (Fox Business).

• USMCA Qualification: Finished pieces produced in Mexico or Canada enter duty-free only if they meet strict regional value-content thresholds under USMCA rules of origin.

Upholstered Wooden Furniture

The 25% Section 232 rate covers sofas, sectionals, armchairs, and any upholstered seating with a wooden frame (HTSUS 9401). This rate stacks on top of country-specific duties. A modular sofa or sectional shipped from China faces both the 25% Section 232 rate and the 25% Section 301 duty, for a combined effective rate approaching 50%, before merchandise processing fees are added. Vietnamese-origin sofas carry 12.5%; USMCA-qualifying pieces from Mexico or Canada carry zero.

Kitchen Cabinets & Vanities

Completed kitchen cabinets and bathroom vanities (HTSUS 9403) carry the same 25% initial rate but face a steeper proposed jump to 50% on January 1, 2027. This is the category most exposed to the next rate change. Anyone planning a kitchen renovation or new build should factor a potential rate doubling into cabinetry cost projections before year-end.

Softwood Timber & Lumber

A 10% Section 232 tariff on softwood timber and lumber (HTSUS 4403–4407) layers on top of existing Canadian countervailing duties of 14–20%, bringing the combined effective rate on Canadian softwood to roughly 30–35%. Canada supplies the majority of US softwood lumber imports. A UBS analysis estimated the wood-product tariffs would add approximately $1,000 to the average cost of building a new home on top of $8,000 in tariff costs homebuilders had already absorbed in 2025 (ABC News, October 2025).

Why Furniture Prices Are Rising

Imported Frames, Foam & Fabric

Even furniture assembled in the United States is not immune to tariff pressure. Most domestic manufacturers source fabrics, foam, drawer mechanisms, and structural wood components from overseas, primarily China and Vietnam. Tariffs on those inputs raise the cost of US-assembled pieces as well as imported finished goods. Industry data indicates foam prices rose in the 12–22% range in early 2026, varying by supplier (Beloit Mattress, 2026); paints, adhesives, and hardware have seen steeper increases in some categories.

Freight, Warehousing & Lead Times

Ocean freight has not returned to pre-2021 levels. The deep-sea freight producer price index sat approximately 47% above its 2020 baseline as of mid-2026 (Eightx Import Cost Tracker, 2026). For furniture, a bulky, low-value-to-volume category that fills containers quickly, freight represents a larger share of landed cost than for most other consumer goods. Extended lead times also force retailers to hold larger inventory buffers, raising warehousing costs that eventually reach retail price tags.

How Much More a Sofa Costs Under Tariffs

Take the Koala Sofa Bed [4th Gen] as a worked example. A sofa bed sourced from Vietnam with a $600 factory cost faced effectively 0% import duty under MFN base rates before October 2025. At Vietnam's current 12.5% effective rate, the duty adds roughly $75 at the border. With standard import fees, ocean freight, and retail markup applied, that $75 in border cost translates to approximately $100-$150 at retail, pushing a piece that might have retailed at $1,000 toward $1,100-$1,150.

The same sofa from a Chinese factory carries an approximately 50% effective rate, adding roughly $225 at the border, potentially $300 or more by the time it reaches a retail price tag. Goldman Sachs estimated in October 2025 that US consumers absorb approximately 55% of total tariff costs, with that share projected to rise toward 70% by the end of 2026 (ABC News). Tax Foundation research found the average US household paid roughly $1,000 in additional costs attributed to tariffs in 2025, rising to an estimated $1,300 in 2026 if current rates hold.

Which Countries & Products Are Capped or Exempt

Not every supplier faces the full Section 232 rate. Proclamation 10976 built in specific country-level caps that most news coverage skips:

• United Kingdom: imports are capped at a maximum of 10% above the MFN base rate.

• EU member states and Japan: imports are capped at 15% combined, including the MFN base rate.

• Mexico and Canada (USMCA): furniture meeting rules of origin enters at 0%. Non-originating components must shift tariff classifications after processing: a Mexican factory assembling a sofa from imported frames and US fabric can qualify, while one merely re-labelling imported finished goods cannot. CBP audits these claims closely.

Goods already covered by automobile-related Section 232 duties are generally exempt from the wood-products action. The Department of Commerce can also grant product-specific exclusions where domestic supply is insufficient to meet demand.

Should You Buy Furniture Before Tariffs Rise

The next scheduled rate change is January 1, 2027: upholstered furniture moves from 25% to 30%, and kitchen cabinets move from 25% to 50%. That gives buyers a window through the end of 2026 to shop at current rates, assuming the schedule holds.

One caveat: the identical January 2026 increase was delayed by presidential proclamation on the last day of 2025, so a repeat postponement is possible. But buying before December 31, 2026 removes that uncertainty entirely, and the cabinet rate increase, a potential doubling, is large enough to justify acting before year-end if a renovation is planned.

For sofa and sectional buyers, the jump from 25% to 30% is smaller in percentage-point terms but still meaningful on a large-format piece. For modular buyers specifically, locking in today's pricing on your base configuration also protects against future tariff-driven price increases on add-on modules purchased later. Koala's current sofa bed range starts from $1,150 for the OG Sofa Bed (Twin XL) and $1,450 for the Koala Sofa Bed [4th Gen] (Twin XL), with the Byron Sofa Bed from $2,395 and the Wanda at $3,295. Browse the full sofa beds and modular sofas range for current availability.

How Furniture Brands Are Responding

Reshoring & Supplier Diversification

Vietnam has consolidated its position as the largest furniture supplier to the US, shipping roughly $13.8 billion in 2025 versus China's $12.6 billion, a near-complete inversion of the 2018 ratio when China dominated at roughly twice Vietnam's volume, driven by the 25-point tariff differential between the two origins. Mexico now holds approximately 20% of the US furniture import market and continues to gain ground under USMCA (Eightx Import Cost Tracker, 2026). Major furniture retailers have announced expanded US production capacity in direct response to tariff pressure.

Flat-Pack & Modular Shipping

Brands are investing in flat-pack and modular designs that fit more product per container, reducing per-unit freight costs. A sofa that ships in flat components and assembles at home occupies significantly less container volume than a pre-assembled equivalent, an increasingly meaningful cost lever when ocean freight is structurally elevated, and tariffs are assessed on cost-inclusive-freight (CIF) values.

Direct-to-Consumer Pricing

Vertically integrated DTC brands can absorb a portion of tariff costs without raising retail prices, because there is no wholesale margin layer in the chain. Smaller multi-tier retailers face the full burden: some have raised prices sharply to offset higher import costs, contributing to demand softness in the 2025–26 holiday period.

What to Look for When You Buy Furniture in a Tariff Market

With prices in motion, these details are worth checking before you commit:

• Frame material and final assembly origin. A solid hardwood or engineered-wood frame assembled in a USMCA-qualifying country carries lower duty exposure than a Chinese-assembled equivalent. Ask where final assembly happened, not just where the timber was grown.

• Foam certification. CertiPUR-US® certified foam signals quality and compliant sourcing. Tariff-margin pressure can lead to undisclosed material substitutions in lower-priced imported pieces.

• Warranty length. A 5-year warranty signals confidence in materials. Shortened warranties can be an early sign of cost-cutting under margin pressure.

• Modular design. A modular sofa lets you price and purchase your base configuration now, then add couch modules later. Locking in today's pricing on the base protects against tariff-driven increases on add-on pieces.

• Washable covers. Washable couch covers extend sofa longevity, directly relevant when replacement costs are climbing.

• Return window and trial period. Confirm your return window starts at delivery, not at order date; longer import lead times mean more time between order and arrival. Koala offers a 120-day trial on the full sofa bed and modular sofa range, starting from delivery.

If sustainability factors into your decision alongside price, our guide to sustainable furniture brands in the US and our overview of sustainable furniture sourcing compare options beyond the sticker price.

Before rates rise on January 1, 2027

Tariff rates on upholstered furniture and kitchen cabinets are scheduled to increase. Buying before year-end locks in today's pricing. Koala ships flat, with lower freight exposure than bulk-assembled alternatives, and every piece is backed by a 5-year warranty. Try it risk-free for 120 days.

Shop Modular Sofas | Shop Sofa Beds | See Best Sellers

Looking for a specific configuration? The Torquay modular sofa is designed to expand over time. Add modules later at today's prices.

Frequently Asked Questions

Are there tariffs on furniture now?

Yes. A 25% Section 232 tariff on imported upholstered wooden furniture and kitchen cabinets has been in effect since October 14, 2025. A 10% tariff on softwood lumber applies from the same date. Furniture from China carries an additional 25% Section 301 duty on top of these rates. The next scheduled rate increase, which would have taken effect January 1, 2026, was delayed to January 1, 2027 by presidential proclamation.

How are tariffs affecting the furniture industry?

Living room and dining room furniture prices jumped 9.5% year-over-year in August 2025 as retailers pre-priced the October tariff; prices have since moderated to 1.1% as of July 2026 (Bureau of Labor Statistics). Goldman Sachs estimated consumers absorb about 55% of tariff costs, rising to an estimated 70% by the end of 2026. Smaller furniture retailers have raised prices sharply to offset higher import costs; larger DTC and vertically integrated brands have absorbed more and gained market share as a result. At least five furniture retailers filed for Chapter 11 bankruptcy in 2025, including American Signature, Walker Edison, and Landmark Furniture, citing tariff pressure alongside a sluggish housing market (TheStreet).

Should I buy furniture before tariffs?

If you need furniture before early 2027, buying before December 31, 2026 avoids the next scheduled rate increase. Upholstered furniture is set to move from 25% to 30% and kitchen cabinets from 25% to 50% on January 1, 2027. The January 2026 increase was delayed at the last moment, so another postponement is possible, but purchasing now removes that uncertainty. Explore Koala's modular sofas and sofa beds for currently available pricing.

Are there tariffs on furniture from the US?

No tariff applies to domestically manufactured furniture sold within the US. However, most domestic furniture makers source fabrics, foam, hardware, and wood components from overseas, primarily China and Vietnam. Tariffs on those imported inputs raise the cost of US-assembled pieces as well, which is why American-made furniture prices have also increased since October 2025, even though the tariff technically applies at the border.

Do furniture tariffs apply to sofas & sectionals?

Yes. Upholstered wooden sofas and sectionals fall under HTSUS 9401 and are covered by the 25% Section 232 tariff in effect since October 14, 2025. A sofa from China carries that rate plus a 25% Section 301 duty for a combined effective rate approaching 50%. Sofas from Vietnam currently carry 12.5%. Sofas assembled in Mexico or Canada using USMCA-qualifying components can enter at 0%, subject to rules of origin requirements.