If you’ve walked into a kitchen showroom lately or tried to price out a new sectional, you’ve probably noticed the numbers on the tags look a little... aggressive. It’s not just "inflation" anymore. The latest wave of trade policy has hit the home goods sector hard. Specifically, the Trump tariffs on furniture, cabinets, and upholstery have become the single biggest variable for anyone trying to renovate a home or furnish a living room in 2026.
But here’s the thing: it’s not a simple "prices go up" story. It's way messier.
What’s Actually Happening with the Tariffs?
In late 2025, the administration used Section 232 of the Trade Expansion Act to slap a 25% tariff on imported kitchen cabinets, bathroom vanities, and upholstered furniture. The logic from the White House was that relying on foreign wood products and seating was a national security risk. They wanted to jumpstart factories in places like North Carolina and Mississippi.
Originally, these rates were supposed to skyrocket on January 1, 2026. We were looking at a jump to 50% for cabinets and 30% for upholstery.
Then, right at the buzzer on December 31, 2025, President Trump signed a proclamation delaying those increases for one year. So, for all of 2026, the rate is staying at 25%. It’s a breather, sure, but a 25% tax is still a massive wallop to a supply chain that’s already been through the ringer.
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The Cabinet War: A House Divided
The cabinet industry is basically in a civil war over this.
On one side, you have groups like the American Kitchen Cabinet Alliance (AKCA). They are actually upset that the 50% tariff was delayed. Perry Miller, the president of Kountry Wood Products, recently said his industry is on "life support" because of cheap, subsidized imports from overseas. To these guys, the tariffs are a literal lifeline. They want the wall to be higher so they can compete on price while paying American wages.
On the other side, you have the National Association of Home Builders (NAHB). They’re freaking out. They point out that even though cabinets are a small part of a home's total cost, these tariffs add about $1,000 to the price of a new build. When you’re already dealing with high interest rates, another grand for the kitchen is a tough pill for buyers to swallow.
Upholstery and the "Hidden" Costs
Upholstery is a different beast. When we talk about Trump tariffs on furniture and upholstery, people think about finished sofas. But it’s the components that really bite.
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- The Fabric Problem: Even if a sofa is "Made in the USA," a huge chunk of the fabric usually comes from China.
- The Foam and Frames: Chemicals for foam and certain wood components for frames are often imported.
- The Shipping Catch: There was no "on-the-water" exemption for these tariffs. If a container of sofas was in the middle of the ocean when the proclamation was signed, the importer got hit with the bill the moment it hit the dock.
Meganne Wecker, who runs Skyline Furniture near Chicago, noted that while the tariffs are a headache, they’ve actually helped her win business. Why? Because retailers are tired of the uncertainty. They’d rather pay a bit more for a sofa made in Illinois than gamble on whether a shipment from Malaysia will face a 25% or 50% tax by the time it arrives.
Why You Can’t Just "Move the Factory"
The big dream of these tariffs is to bring the "Golden Age" of furniture back to the South. It sounds great on paper. In reality, it's hard.
The American Home Furnishings Alliance (AHFA) has been pretty vocal about the labor shortage. You can build a factory, but finding 500 people to work the upholstery lines is a different story. We’ve lost a generation of skilled furniture makers. Plus, the tech industry and other high-paying trades are competing for those same workers.
What This Means for Your Wallet
If you’re shopping right now, you’re seeing the "trickle-down" effect. Retailers like Wayfair, RH, and Williams-Sonoma have had to pivot fast. Some are absorbing the costs to keep customers happy, but most are passing at least a portion of that 25% tax onto you.
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Honestly, it’s a weird time to buy. Prices are volatile. One month a cabinet line is one price; the next, it’s 15% higher because a "surcharge" was added to cover the duty.
Strategic Moves for 2026
If you are planning a renovation or a big furniture purchase, here is the ground reality:
- Look for "Domestic-Heavy" Brands: Companies that source their wood and fabric within North America (or from countries like the UK, which has a 10% tariff cap) are going to have much more stable pricing.
- Ask About Surcharges: Before you put down a deposit on custom cabinets, ask if the price is locked. Some contracts now have "tariff clauses" that let the price float until the wood is delivered.
- The "De Minimis" Factor: The government also cracked down on low-value imports (the $800-and-under rule). This means those super-cheap flat-pack pieces you find on budget sites are also getting more expensive.
- Wait and See? Since the 50% hike is delayed until January 2027, there’s a window of relative "stability" right now. If you’ve been waiting for a "better time," this year might be as good as it gets before the next potential jump.
The trade landscape is shifting almost weekly. Between Supreme Court challenges to the President's tariff powers and ongoing negotiations with trade partners, the only thing that’s certain is that your new kitchen is going to cost more than your parents' did.
Practical Steps to Navigate the Changes
If you're a business owner or a homeowner caught in this, your next moves should be about hedging risk. For businesses, moving away from "just-in-time" inventory to "just-in-case" can save you from a sudden 25% price spike on your next shipment. For homeowners, focusing on quality over quantity matters more than ever. If you're paying a "tariff tax" anyway, you might as well pay it on a piece of furniture that's going to last twenty years instead of five.
Keep an eye on the U.S. Trade Representative (USTR) announcements throughout the year. If negotiations with wood-exporting countries go well, we might see these rates stay flat or even dip. If they go south, January 2027 will be a very expensive month for the American home.