Furniture Stocks Fall Amid Tariff Threat from President Trump

August 25, 2025  by Karen Parrish in Business Strategy, Industry   

Wayfair (W), RH (RH), and Williams-Sonoma (WSM) were among those stocks who were affected on Monday. The tariffs that will be imposed have “yet to be determined.” In his post on Truth Social on Friday, Trump said that his administration would be doing a "major Tariff Investigation on Furniture coming into the United States."

"Within the next 50 days, that Investigation will be completed, and Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined," Trump added.

The article on Yahoo! Finance reported Wayfair stock fell as much as 7% on Monday, while RH stock dropped as much as 6% and Williams-Sonoma fell nearly 3%. Additionally, shares of all three retailers fell late Friday following Trump's initial post on the investigation from his administration.

They also reported that shares of companies that manufacture in the US rallied. La-Z-Boy stock gained almost 1%, and Ethan Allen Interiors, which has 75% of its manufacturing in North America, also rose.

Wayfair CEO Niraj Shah said, "There's no question the higher-end market is stronger than mass," during the retailer's quarterly earnings call earlier this month as he described the overall discretionary market.

He continued, "I think the market is still flat to down low-single digits. And I would describe the market not as having strength, but as sort of feeling like it's bottomed out, like bumping along the bottom."

Yahoo! continued, despite Monday's losses, Wayfair shares are higher year to date. The retailer has made improvements in cost structure and manufacturing by shifting to other Asian countries ahead of proposed tariffs.

"We continue to monitor the evolving trade landscape and remain confident in our ability to adapt as needed," read a statement from Wayfair on Monday.

A Hold rating on the stock on Monday was reiterated by the CFRA Research analysts. It was noted that Wayfair operates primarily as a marketplace, connecting buyers and sellers.

"Because the assortment is largely unbranded and highly substitutable, competition among sellers is intense, and many have been reluctant to raise prices amid a multi-year downturn in the home furnishings market," wrote senior analyst Arun Sundaram.

Again, check out the article on Yahoo! Finance, and a conversation with Yahoo Finance Senior Business Reporter Ines Ferré and Market Domination with Josh Lipton.