Furniture retailers RH (RH) and Wayfair (W) surged up to 9% Thursday after President Trump delayed planned tariff increases for another year 1.
The delay provides crucial breathing room for companies heavily dependent on imported goods, as higher tariffs would have squeezed profit margins and forced price increases on consumers.
Key Takeaways
- Trump delays furniture tariff increases from 25% to 30%
- RH jumps 9.4%, Wayfair gains 7.2% on relief
- Tariffs on kitchen cabinets, vanities also remain unchanged
Market Reaction & Context
RH shares jumped 9.4% to around 196, while Wayfair climbed 7.2% 5. Williams-Sonoma (WSM) gained 5%, with smaller players Arhaus rising 2% and Lovesac adding 0.3% 3.
The furniture sector has outperformed broader markets Thursday, with the rally coming after Trump announced on New Year’s Eve that tariffs would remain at current levels rather than increase as previously planned.
Tariff Details
Tariffs of 25% will remain in place for upholstered furniture instead of rising to 30%, according to the announcement 8. Kitchen cabinets and vanities will also hold at the current 25% rate rather than face the planned increase.
The delay marks the second time Trump has postponed these specific tariff hikes, providing continued relief for an industry that relies heavily on overseas manufacturing.
Analyst Perspective
Investment bank Mizuho noted in a client communication that the decision to delay higher tariffs provides important relief for furniture retailers 4. The move gives companies more time to adjust supply chains and pricing strategies without immediate margin pressure.
Analysts have previously warned that tariff increases would force furniture companies to either absorb higher costs or pass them through to consumers already dealing with elevated prices.
Industry Impact
The furniture industry has been particularly sensitive to trade policy given its reliance on imported goods, especially from China. Many retailers have spent recent years diversifying supply chains to reduce tariff exposure, but higher rates would still impact profitability.
Thursday’s rally reflects investor relief that companies can maintain current cost structures without immediate disruption to their business models or consumer pricing.
Looking Forward
While the delay provides near-term relief, furniture companies continue to face uncertainty around future trade policy. The one-year extension gives businesses time to plan but doesn’t eliminate the underlying tariff risk.
Investors will likely monitor additional trade announcements from the Trump administration for signals about broader tariff policy affecting retail and consumer goods sectors.
Not investment advice. For informational purposes only.
References
1(2026). “RH, Wayfair shares rise after Trump delays furniture tariffs again”. CNBC. Retrieved January 2, 2026.
2(2026). “Furniture Stocks Rise After Trump Delays Tariff Hikes”. MarketWatch. Retrieved January 2, 2026.
3(2026). “Furniture Stocks Rise as Trump Tariff Delay Gives ‘Breathing Room'”. Barron’s. Retrieved January 2, 2026.
4(2026). “Furniture stocks rise after delayed tariff increases”. Yahoo Finance. Retrieved January 2, 2026.
5(2026). “Furniture stocks rise as Trump delays tariff increase”. Proactive Investors. Retrieved January 2, 2026.
6(2026). “Furniture stocks rise after delayed tariff increases”. Investing.com. Retrieved January 2, 2026.
7(2026). “Stock market today: Live updates”. CNBC. Retrieved January 2, 2026.
8(2026). “Trump Trade: Trump delays furniture tariff increases for another year”. TipRanks. Retrieved January 2, 2026.
9(2026). “Furniture stocks rise after delayed tariff increases”. Yahoo Finance UK. Retrieved January 2, 2026.