RH, Wayfair up after Trump delays higher tariffs
Wayfair store in Wilmette, Illinois.
Courtesy: Wayfair
Wayfair, 1 day
Trump announced Wednesday a one-year pause on increased taxes on upholstered furniture, as well as kitchen cabinets and makeup. Instead, taxes on upholstered furniture will remain at 25%, the level Trump set in September.
Before Trump’s 11th-hour cancellation, taxes on this type of furniture were scheduled to increase by 30% starting in early 2026. Trump cited ongoing trade disputes as the reason for withdrawing tariff increases.
Embers in the name He said the tariffs were an “overwhelming benefit” for the United States and that it would be a “terrible blow” if the country lost the ability to impose duties on others, he said in a social media post Friday morning. Trump’s comments come as the White House awaits a Supreme Court ruling on the legality of many of Trump’s new taxes.
Furniture suppliers have been under scrutiny from Wall Street as Trump’s focus on broad, high tariffs on imports raises concerns about rising costs. But stocks in the sector have followed a very different course as investors determine how trade policy changes and other variables will affect each business.
Wayfair is up more than 125% in 2025 as value-focused retailers gain traction among consumers. On the other hand, West Elm and Pottery Barn’s parent company, Williams-Sonoma, lost more than 3% last year. RH, whose CEO attracted attention in April when he vividly reacted to the stock decline, ended the year with a loss of more than 50%.
“Oh, crap…” RH CEO Gary Friedman said on the California-based company’s April earnings call.
“I think it took a hit when the tariffs came out,” Friedman added. “Anyone can see where we source from in our 10-K, so it’s not a secret and we’re not trying to hide it by putting everything in an Asian bucket.”
