Demystifying tariffs with legal expertise

Introduction

On Local News Live (September 2, 2025), international trade attorney Michelle Schulz, founder of Schulz Trade Consulting, explained how the administration’s proposed furniture-specific tariffs could reshape an entire industry. With more than $20 billion in consumer furniture goods imported annually, the ripple effects could reach every corner of the supply chain—from manufacturers and distributors to retailers and households.

“The difference with this furniture tariff… is that it would apply to all furniture from anywhere. Even if it’s IKEA, it doesn’t matter where it’s coming from. That’s going to make a big difference in the price we pay when we go to buy furniture.” – Michelle Schulz

The Scope and Reach of Furniture Tariffs

Unlike earlier tariffs that targeted specific countries (such as high duties on certain Chinese imports), this new round would cover all imported furniture, regardless of origin.

The stated goal is to protect U.S. manufacturers struggling to compete with lower-cost imports. But the broad application means even companies sourcing from “friendly” nations will be affected.

• Residential and commercial buyers alike will face higher prices.
• Large-scale projects—like outfitting hotels, offices, or multi-family housing—could see budgets swell dramatically.
• Domestic producers that rely on imported components may still face increased costs.

“Furniture prices are some of the most impacted by tariffs… and this time, the proposal is universal.”

Strategies for Businesses Facing Tariffs

Schulz urged businesses not to sit idle. With tariffs potentially reaching as high as 250%, preparation is key.

Her recommendations:

• Track tariffs daily: “I advise them to watch our Tariff Tracker… because they change every day.”
• Time your purchases: Consider budgeting for and buying furniture before mid-October, when tariffs are expected to be investigated.
• Know your tariff codes: Review your Harmonized Tariff Schedule (HTS) codes and calculate estimated duty exposure.
• Scenario plan: Build financial models around multiple duty-rate scenarios (10%, 50%, 250%) to stress-test budgets.

“Before mid-October, either budget and buy now—or plan on what you’re going to pay by checking your tariff code and the duty rate.” – Michelle Schulz

Consumers Will Feel the Price Hikes

While some industries occasionally absorb tariff costs, Schulz was blunt: furniture is different.

“With my clients, the consumers will see higher prices. We’ve seen this before with the Section 301 tariffs on China. Clients simply could not withstand the loss of profit when tariffs on furniture were too high.”

This means:

• Retail prices will rise as businesses pass costs through.
• Some distributors and retailers may not survive if margins vanish.
• Projects that once penciled out under existing costs could be delayed, downsized, or canceled.

Industry Disruption Beyond Prices

The tariffs are designed to encourage domestic manufacturing, but global supply chains complicate that reality. Even U.S.-based manufacturers often rely on imported wood, textiles, and components.

“There may be some manufacturers who can source locally, but historically most manufacturers source abroad. This includes large commercial projects—office buildings, hotels—where furniture is put together from parts that come from multiple countries.” – Michelle Schulz

FAQ: Furniture Tariffs Explained

Will all furniture be covered?
Yes. The proposal applies to all imported furniture, regardless of origin.

Could tariffs really reach 250%?
President Trump has suggested this ceiling, though exact rates are still pending.

Will businesses absorb the costs?
Unlikely. Most will pass costs through to consumers, as seen during earlier Section 301 tariffs.

Who is most at risk?
Import-heavy retailers, commercial contractors, and domestic manufacturers are reliant on foreign components.

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