Navigating the New Tariffs: What They Mean for Consumers, Homebuilders, and Businesses

In mid-October 2025, new tariffs on imported furniture and wood products came into effect, adding to existing duties and further increasing costs for businesses and consumers alike. While these tariffs are not exclusive to China, Chinese goods are particularly affected, with some facing effective duties of up to 70%.

The implications of these tariffs are far-reaching, impacting not only consumers and businesses but also the broader economy. Here, we examine the key effects across different sectors.

Impact on Consumers

1. Rising Prices:

   Retailers and economists agree that the cost of these tariffs will largely be passed on to consumers. Furniture prices are expected to increase significantly, with some companies warning of double-digit price hikes.

2. Reduced Spending Power:

   According to research by the Budget Lab at Yale, the 2025 tariffs could result in an average household income loss of $1,800 this year. Low-income households are particularly vulnerable to these changes, as their spending power is disproportionately affected.

3. Affordability Challenges:

   The combination of rising furniture prices and reduced purchasing power presents affordability concerns for many families. For some, this may mean delaying purchases or prioritising other essential expenses.

Impact on Homebuilders and the Housing Market

1. Higher Construction Costs:

   Tariffs on lumber, cabinets, and other wood products have increased construction and renovation costs, presenting new challenges for homebuilders.

2. Pressure on the Housing Market:

   Industry experts, including the National Association of Home Builders, warn that these tariffs are creating additional obstacles for an already fragile housing market. Rising costs may discourage new developments, particularly in the affordable housing segment.

3. Renovation Delays:

   For homeowners, the increased cost of materials may lead to postponed renovation projects, further slowing activity in the residential construction sector.

Impact on Businesses and Manufacturers

1. Cost Uncertainty:

   Businesses face rising costs and pricing uncertainty, which can disrupt their strategies and impact profitability. For example, companies like Restoration Hardware (RH) have already reported significant tariff-related expenses.

2. Supply Chain Diversification:

   The new tariffs are prompting many companies to reassess their sourcing strategies. Diversifying supply chains to countries with lower tariff barriers is becoming an increasingly attractive option.

3. Opportunities for Domestic Manufacturers:

   Domestic furniture and wood product manufacturers may benefit from the tariffs, as they reduce competition from imported goods. This could lead to increased demand for American-made products.

4. Mixed Outcomes for Manufacturers:

   While some manufacturers, such as custom cabinet makers, could see a boost from shifting demand, others with multinational supply chains will need to navigate higher costs for imported materials.

Broader Economic Context

1. Historic Tariff Levels:

   The average U.S. tariff rate is now the highest it has been since 1934, according to the Budget Lab at Yale. This trend is reshaping global trade dynamics and increasing the cost of imported goods across multiple sectors.

2. China Tariff Uncertainty:

   The current furniture tariffs add another layer of complexity to U.S.-China trade relations. With a potential 100% tariff on all Chinese goods still on the table, businesses are preparing for further disruption.

3. Global Trade Concerns:

   Analysts warn that escalating trade tensions between the U.S. and China could disrupt global markets and potentially push the world economy closer to a recession.

How Burnt Oringe Intl. Can Help

At Burnt Oringe Intl., we understand how challenging trade volatility can be for businesses. Our expertise in global procurement allows us to help our clients navigate these complexities. By diversifying sourcing options and leveraging our extensive supplier network across countries such as Vietnam, India, and Indonesia, we ensure our clients receive high-quality products at competitive prices.

We work closely with our customers to assess their specific needs, factoring in product type, tariffs, and logistics to provide tailored solutions. Whether you’re facing rising costs or supply chain uncertainties, Burnt Oringe Intl. is here to support you every step of the way.

For more information about how we can help your business adapt to changing trade dynamics, get in touch with us today.

Burnt Oringe Intl. – Your Global Procurement Partner.