Business
Small furniture retailers face existential tariff threat, despite Supreme Court ruling
A worker walks through rows of American-made furniture at Warehouse Showrooms Furniture in Alexandria, Virginia, US. President Donald Trump’s sweeping new tariffs officially took hold Thursday, as he barrels forward with his turbulent push to reshape global trade.
Bloomberg | Bloomberg | Getty Images
The Supreme Court struck down President Donald Trump’s so-called “reciprocal tariffs” on Friday. Regardless of the ruling, there’s little comfort to be found for the furniture industry.
Furniture importers are facing steep import duties after the industry was hit with higher tariffs on items such as couches, kitchen cabinets and vanities last fall under section 232 of the Trade Expansion Act.
While Trump’s country-specific “liberation day” tariffs imposed under the International Emergency Economic Powers Act and announced in April were under review by the nation’s highest court, the duties specific to furniture importers, of around 25%, were not.
Compounding the issue is a constant thread of uncertainty plaguing the industry, said Peter Theran, CEO of the Home Furnishings Association, the trade group representing furniture retailers.
The 25% duty on certain furniture imports was supposed to rise to 50% in January, but at the end of December, that plan was pushed back to 2027. Its also become common over the past year for Trump to threaten new tariffs on various imports that never end up getting enacted.
“This is a very, very difficult time to manage your business,” said Theran. “The No. 1 driver of the difficulty of managing your business is unpredictability and an inability to make alternative plans and invest in those plans, because you don’t know what tomorrow will be.”
Rising distress
Tariffs and the uncertainty they’ve brought are the latest blow to the furniture industry, which has been struggling for the past four years and was under pressure well before Trump’s trade war.
During the Covid-19 pandemic, when people were stuck at home and flush with cash, many Americans took the opportunity to refresh their spaces and buy new furniture and decor. Then, low interest rates brought a surge in demand for new homes, which served as a catalyst for furniture buying.
The result was outsized growth across the home goods industry and boom times for furniture.
But as inflation and interest rates began to creep up in 2022, the sector started to sputter, and it later declined for the first time in at least seven years, according to data from Euromonitor.
By the time tariffs came around, home sales had slowed and some furniture companies were already struggling to keep operations afloat and couldn’t manage the sudden increase in fixed costs.
American Signature Furniture, the parent company behind Value City Furniture, declared bankruptcy late last year after nearly 80 years in business. It began liquidation sales at its 89 remaining stores last month.
In a court filing, the company said the aftermath of the Covid pandemic, subsequent shifts in consumer spending and rising costs led to a 27% decline in sales between 2023 and 2025. Net operating losses ballooned from $18 million to $70 million during the same time period, it said.
By the end of 2024, the company was facing “significant liquidity constraints,” which were then “further exacerbated and accelerated by the introduction of new tariff policies,” the company said in the filing.
Over the last year, at least 10 other furniture businesses have declared bankruptcy, with some liquidating and ceasing operations altogether, according to a CNBC review of federal bankruptcy filings.
Most of the companies are smaller businesses, which have been hit harder by tariffs because they have fewer resources than their larger competitors.
“The smaller players are definitely the ones that will be the hardest hit because they don’t necessarily have deep pockets, they don’t have the economies of scale, they don’t have the huge sourcing teams that can suddenly look to pivot the destination or the origin of the products,” said Neil Saunders, retail analyst and managing director at GlobalData. “So they are under a lot of pressure, and we probably will see more failures in that independent space.”
Joseph Cozza, whose small furniture business East Coast Innovators supplies retailers such as Macy’s and Raymour & Flanigan, told CNBC he was forced to raise prices between 15% and 18% to offset higher tariff costs, leading to a slide in demand over the holidays.
For now, Cozza said he can keep his business running but is hoping for an interest rate cut, a jolt to the housing market and larger-than-expected tax returns to spur sales.
“I’m praying for that,” he said.
If not, he might have to move his business from Philadelphia to North Carolina, where operating costs are lower, he said.
“I have a nice company with nice employees, and I pay them all a really good wage, and I’m being penalized,” said Cozza. “I’m being penalized for what I do, and I just don’t think that’s fair.”
Market share grab
The advent of tariffs has created a market grab opportunity for larger businesses, which are better equipped than smaller businesses to weather policy changes and keep prices lower.
Over the last year, some large and publicly traded furniture companies have actually been growing profits and sales despite higher costs from tariffs.
During Ikea’s fiscal 2025, it was able to keep prices relatively steady and revenue about flat compared with 2024, it said in a news release. It did report higher operating expenses but attributed the increase to an acquisition it made in the Baltics, not tariffs.
RH, Williams-Sonoma and Wayfair have all grown sales and margins even as they faced higher import costs.
In the nine months ended Nov. 1, RH saw sales grow almost 10% as margins expanded. At Williams-Sonoma, sales grew about 4% in the 39 weeks ended Nov. 2 while operating margins grew slightly. Wayfair, which reported fourth-quarter results on Thursday, saw revenue grow 5.1% in fiscal 2025 as gross margin stayed steady and operating expenses fell.
Wall Street has yet to see the full impact of furniture-specific tariffs on these companies because most of them last reported results right around the time the tariffs were enacted.
But they already faced a wide array of duties throughout 2025. Most U.S. furniture imports come from China and from Vietnam and other parts of southeast Asia, which have seen a range of higher tariffs before furniture-specific levies were introduced. At one point, imports from China were tariffed as high as 145%, while Vietnam faced tariffs of around 20%.
Those country-specific duties were the ones struck down by the Supreme Court. At the heart of the case was whether Trump had the legal authority to impose what he called reciprocal tariffs, which critics said infringed on the power of Congress to tax.
A reversal of those tariff rates means even more uncertainty. Chief among the questions now is how the tariffs will be refunded and whether the administration will come up with new ways to implement trade initiatives.
“A CEO of one of the largest furniture retailers in the country said to me, ‘Even if tariff strategy ended up with the worst possible outcome for my business, I would then create a plan, invest in that plan, execute under that plan and create the best outcome that’s available,'” said Theran of the Home Furnishings Association.
“No one can do that,” he said. “No one can invest in a plan now, because the tariff strategy has not stabilized. It keeps changing.”
Oil giant BP has said it is now set for an “exceptional” oil trading result in the first three months of the year after the Iran war sent the cost of crude soaring.
The FTSE 100 firm upgraded its first quarter oil trading guidance, which follows a “weak” out-turn for the division in the final quarter of 2025.
BP said it was seeing “impacts associated with the ongoing situation in the Middle East and the current market conditions resulting in heightened volatility in crude oil, natural gas and refined products prices in the latter part of the first quarter”.
“These market conditions are expected to impact financial results, including trading results and working capital movements,” it added, pointing to an increased impact of so-called price lags.
Oil prices have surged higher since the US-Israel war on Iran started on February 28 and are now more than 60% up so far this year.
Brent crude reached close to 120 US dollars a barrel at one stage and is still hovering around the 100 dollars level as peace talks falter and amid fears over a looming global energy supply crisis.
BP said Brent crude prices averaged 81.13 dollars a barrel over the first quarter as a whole, which includes just over four weeks of volatility caused by the Middle East conflict.
This is up sharply from 63.73 dollars a barrel in the previous three months.
Every one dollar movement per barrel in oil prices leads to a 340 million-dollar (£251 million) impact on pre-tax operating profits, according to BP.
BP said upstream production was now expected to be broadly flat compared with the previous quarter, while oil production would be slightly lower, adding that net debt was set to increase to between 25 and 27 billion US dollars (£18.5 billion to £20 billion), up from 22.2 billion dollars (£16.4 billion) in the fourth quarter.
The firm will report first quarter figures on April 28.
BP shares fell around 1% in Tuesday morning trading as oil prices edged below 100 US dollars a barrel on that latest hopes of a revival in US-Iran negotiations.
Susannah Streeter, chief investment strategist at Wealth Club, said: “Crude prices have dipped back a little as hopes rise for fresh talks to end the Iran conflict, but the squeeze on energy supplies is likely to remain a disruptive force, and markets are set to stay jittery.
“BP’s trading update reflects this uncertainty, with the company highlighting that volatile commodity markets will be a key feature of its first-quarter results.”
She added that net debt at BP is rising “because more cash is being tied up in day-to-day operations”.
“As oil prices rise, BP is likely to need more money to hold the same barrels and to keep its trading activity running, which pushes up borrowing in the short term,” she said.
Fellow FTSE 100 oil major Shell last week also said the recent spike in prices was boosting trading in its chemical and products business, which includes oil trading.
But Shell cut its guidance for first quarter integrated gas production after volumes from Qatar were particularly impacted during recent attacks.
Last month, Shell’s PearlGTL site in Qatar stopped production after being hit during attacks while LNG facilities in the country partly owned by Shell have also been impacted.
BP’s upcoming first quarter results will be the first under new chief executive Meg O’Neill, who took over on April 1.
She replaced Murray Auchincloss, who was ousted last year as part of a leadership overhaul by new chairman Albert Manifold.
Business
UP hikes minimum wages across categories amid Noida protest: What workers will now earn – The Times of India
The Uttar Pradesh government on Tuesday approved an interim hike of around 21% in minimum wages for workers in Gautam Buddh Nagar and Ghaziabad, following large-scale protests by thousands of factory workers in Noida. The fresh minimum wage structure introduced across worker categories, will be taking effect retrospectively from April 1. The agitation, which had been intensifying over several days, saw an estimated 40,000 to 45,000 workers assemble at nearly 80 to 83 locations across the Gautam Buddh Nagar commissionerate, including key industrial hubs such as Sector 62, Phase-2, Sector 63, Sector 60, Sector 84 and parts of Greater Noida. The revised wages were finalised by the high-powered committee and received approval late on Monday night. Gautam Buddh Nagar District Magistrate Medha Roopam said, “The wage increase has been done by the high-powered committee… The decision was approved by CM UP late last night.”
Breakdown: Who gets what
Gautam Buddh Nagar and GhaziabadThese regions have seen the sharpest revision:
- Unskilled workers will now be paid Rs 13,690 per month, up from Rs 11,313.
- Semi-skilled workers will receive Rs 15,059.
- Skilled workers will earn Rs 16,868 per month.
Other municipal corporation areas
- The new monthly wages stand at Rs 13,006 for unskilled workers.
- Semi-skilled workers will now earn Rs 14,306 every month.
- Skilled workers will be paid Rs 16,025.
In other districts
- Unskilled workers will now get Rs 12,356 per month.
- Semi-skilled workers will earn Rs 13,591.
- Skilled workers will see Rs 15,224 per month.
Additionally, Uttar Pradesh CM Yogi Adityanath has urged employers to ensure timely wage payments, provide appropriate overtime compensation, and guarantee weekly offs, bonuses and social security benefits, while also maintaining safe working conditions, especially for female workersThe wage revision comes after widespread protests by factory workers in Noida on Monday, where thousands raised demands for better pay and working conditions. Clashes broke out in parts of the district during the demonstrations, after which the government set up a committee to step in and facilitate discussions between workers and employers.The government said that it had assessed all feedback and objections before finalising the revision, aiming for the “balanced and practical” outcome.As per the official statement, the committee is working to resolve the issue through dialogue and coordination while considering measures to address industries dealing with global headwinds, including rising input costs and falling exports, even as workers’ demands on wages, overtime, safety and working conditions remain “relevant and important.”It further added that an interim wage revision linked to indexation is under consideration, and that the process for final wage determination will be taken up based on recommendations of a wage board to be formed soon.At the same time, the government rejected as “fake and misleading” social media claims suggesting a uniform minimum wage of Rs 20,000 per month, clarifying that no such order has been issued and that work on fixing a national “floor wage” is still underway at the central level.
Oil prices fell sharply on Tuesday despite heightened tensions in the Middle East, as markets bet on a possible diplomatic breakthrough between the United States and Iran even after Washington moved to block Iranian ports.
Brent crude dropped 2.7% to $96.66 a barrel, while US crude slid 3% to $96.13, with traders weighing signs that talks could still resume following the collapse of weekend negotiations.
Sources told Reuters that both sides have kept the door open to dialogue, while a US official pointed to forward movement towards a potential agreement.
The United States has continued to engage Tehran even as its military enforced a blockade of Iranian ports, a move aimed at increasing pressure after talks failed to deliver a deal.
US President Donald Trump said on Monday that Iran had “called this morning” and “they’d like to work a deal”, although the claim could not be independently verified.
“The failed weekend talks did not produce a deal, but they also did not close the door on diplomacy, and that is enough for equities to keep pushing higher for now,” said Charu Chanana, chief investment strategist at Saxo.
Reflecting that optimism, Asian equities advanced in early trade. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, while Japan’s Nikkei and South Korea’s Kospi each gained more than 2%.
Futures also pointed to a steady global outlook, with Nasdaq futures up 0.13%, S&P 500 futures flat, EUROSTOXX 50 futures rising 0.63%, and DAX futures adding 0.77%, following an overnight rally on Wall Street.
The US dollar, often seen as a safe haven, weakened alongside oil as investors shifted towards riskier assets.
“Markets are trading hope, not resolution,” said Chanana.
Analysts said Washington’s blockade strategy could shift pressure onto Tehran without immediate escalation on the ground.
“The US has actually played that trump card… it’s now forced the Iranians back to the drawing board,” said Tony Sycamore, a market analyst at IG.
Dollar on backfoot
The dollar fell to a 1-1/2-month low of 98.328 against a basket of currencies on Tuesday, as buoyant risk sentiment dampened demand for the world’s reserve currency.
That left the euro trading 0.05% higher at $1.1764 while sterling GBP= rose to a more than six-week peak of $1.3514.
“The US and Iran have started to walk down the path of coming up to an agreement,” said Joseph Capurso, a strategist at Commonwealth Bank of Australia.
However, “the markets are still facing a global economic outlook that is deteriorating, and I think the risks are high that you get equity markets and credit markets and the like fall again, and that would push up the US dollar against probably all currencies.”
US Treasury yields were little changed, with the two-year yield last at 3.7722% while the benchmark 10-year yield stood at 4.2854%.
The inflationary pulse from the steep rise in energy prices has prompted investors to prepare for the possibility that a number of major central banks will lean towards raising rates, marking a sharp reversal from expectations before the war for rate cuts or a prolonged pause.
Elsewhere, spot gold was up 0.7% at $4,771.81 an ounce.
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