Shares in home furnishing retailers jumped Friday after President Trump announced a one-year pause on higher tariffs on upholstered furniture, kitchen cabinets and vanities.
Luxury furniture retailer RH rose 9.5% and online retailer Wayfair jumped 6.3%.
Stock for Williams-Sonoma, which sells kitchenware and home decor, increased 5.3%.
Other American furniture retailers like Ethan Allen and La-Z-Boy rose 1% and 0.4%, respectively.
In a fact sheet shared late Wednesday, the White House said it was keeping tariffs on furniture, kitchen cabinets and vanities at the original 25% rate that Trump set in September.
Rates had been set to rise Thursday, New Year’s Day, to 30% on upholstered furniture and to 50% on kitchen cabinets and vanities.
Economists feared the tariff hikes could result in substantial price increases for customers, since furniture is a particularly tariff-sensitive category – and a large-ticket purchase for many American families.
In November, prices on furniture and bedding were up 3% over the year, according to the Consumer Price Index.
“The United States continues to engage in productive negotiations with trade partners to address trade reciprocity and national security concerns with respect to imports of wood products,” the White House fact sheet stated.
The Trump administration said it was delaying the higher tariffs until Jan. 1, 2027, due to ongoing trade talks, not because it was retreating from its tariff agenda.
It has been awaiting a Supreme Court decision on a vast batch of tariffs implemented under the International Emergency Economic Powers Act.
If the Supreme Court finds that Trump overstepped his authority and decides overturns the IEEPA tariffs, the US government could be forced to refund as much as $168 billion to businesses, according to a recent analysis cited by CBS News.
“Tariffs are an overwhelming benefit to our Nation, as they have been incredible for our National Security and Prosperity (like nobody has ever seen before!),” Trump wrote in a Truth Social post Friday.
“Losing our ability to Tariff other countries who treat us unfairly would be a terrible blow to the United States of America.”
Trump is reportedly preparing to unleash a fresh wave of tariffs under alternative trade laws if the Supreme Court strikes down the levies.
The White House has continued to defend its use of tariffs as a national security measure to protect US industries – even as affordability concerns are a top concern for voters ahead of the 2026 midterm elections.
The furniture industry saw mixed results last year. Shares in Wayfair surged more than 125% in 2025 as consumers prioritized value and deals.
RH ended the year down more than 50% – with its chief executive going viral for reacting live to the stock tanking.
“Oh s–t,” RH CEO Gary Friedman blurted out during the company’s earnings call in April as the stock plummeted.
“It got hit when, I think, the tariffs came out,” he said. “Everybody can see in our 10-K where we’re sourcing from, so it’s not a secret, and we’re not trying to disguise it by putting everything in an Asia bucket.”
Williams-Sonoma, which owns West Elm and Pottery Barn, dipped more than 3% last year.
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