Furniture makers feel the economy's pinch

"When the British designer Fred Rigby released his first furniture collection in 2021, he knew from the outset he would prioritize a U.S. audience-a bigger market with more sales opportunities, he says. Rigby designs and manufactures elegantly crafted furniture in the Oxfordshire countryside, and has built strong relationships with interior designer clients in cities like New York, L.A. and Miami."

"Since October 14, upholstered furniture imported to the U.S.-such as sofas and armchairs-has been subject to a 25% tariff, which is due to rise to 30% on January 1, 2026. In reality, trade deals with specific countries affect this final number. For instance, tariffs on all imports from EU countries are capped at 15%; for the U.K., it's 10%; for Brazil, it's 50%."

"These changes and uncertainties have rattled the furniture world, including foreign furniture makers with significant U.S. markets like Rigby and U.S.-based interior designers sourcing global furniture. Even domestic furniture brands, who often rely on international materials, are taking a hit. Delaware-headquartered American Signature, parent company of furnishings retailers American Signature Furniture and Value City, filed for bankruptcy in November, citing the economic impacts of tariffs."

Fred Rigby's Oxfordshire studio prioritized the U.S. market and established strong relationships with interior designers in New York, L.A., and Miami, generating 60–70% of sales from the U.S. In 2025, new tariffs on imported upholstered furniture — 25% since October 14, rising to 30% on January 1, 2026 — caused projects to disappear and pipelines to weaken. Tariff rates vary by trade deals and country of origin, with caps for the EU (15%), the U.K. (10%), and higher rates for countries like Brazil (50%). Domestic brands and retailers reliant on international materials have faced financial strain, including bankruptcy filings.

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