US furniture stocks fell on Monday following President Donald Trump’s announcement of a new tariff investigation on imported furniture.
This investigation, set to be completed within 50 days, will determine tariffs on furniture imported into the United States from other countries at a yet-to-be-determined rate.
The investigation seeks to boost domestic production in key furniture hubs such as North Carolina, South Carolina, and Michigan.
Shares of companies reliant on imports fell sharply. RH (NYSE:RH) dropped 5.2% to $231, Wayfair Inc (NYSE:W, NYSE:) fell 5.6% to $74, and Williams-Sonoma (NYSE:WSM) slid 1.5% to $200.
These companies rely heavily on imports from countries like China and Vietnam, which have previously faced tariffs, making them vulnerable to further costs if new tariffs are imposed.
In contrast, manufacturers focused on domestic production gained slightly, with La-Z-Boy (NYSE:LZB) rising 0.8% to $37 and Ethan Allen Interiors (NYSE:ETD) up 1.4% at $30