The White House once again shows softness toward China, extending tariffs on furniture and other products for a year, causing cheers among U.S. retailers!
As the new year 2026 began, the White House released a message that relieved U.S. retailers: the plan to raise tariffs on Chinese-made padded furniture, kitchen cabinets, and dressers was officially postponed for one year. This means that the import tax rate for these products will remain at 25%, instead of increasing to 30% or even 50% as originally planned.
The reason given for the tariff increase was clear: to protect the U.S. domestic furniture manufacturing industry, especially in old industrial areas like the Piedmont region of North Carolina, which used to be famous for its furniture industry. However, reality is far more complex than slogans. First, the products subject to the proposed tariff increase—such as sofas, recliners, and kitchen cabinets—are highly dependent on Chinese supply chains. The U.S. domestic production capacity is limited, and the costs are much higher.
If the tariffs were doubled, retail prices would inevitably surge. At present, although inflation has slightly declined, ordinary families remain highly sensitive to prices. In November 2025, the White House had already canceled tariffs on dozens of agricultural products such as beef, coffee, and bananas, citing the reason "to ease the pressure of living costs." Many of these goods cannot be produced in large quantities in the United States; forcing tariffs would only push up supermarket shelf prices.
According to past U.S. data, China has long accounted for more than 40% of U.S. imports of soft furniture; kitchen cabinet products are even highly concentrated in export enterprises in Guangdong and Zhejiang provinces. If the tax rate were actually raised to 50%, large retailers like IKEA, Walmart, and Home Depot would almost certainly be unable to absorb the costs, and ultimately would pass them on to consumers. Currently, U.S. consumer spending is showing signs of weakness, and holiday season sales data have not been impressive. Adding another round of price hikes could further suppress domestic demand.
2026 is an election year, and the political situation in various states is sensitive. While North Carolina has demands for manufacturing return, voters in most other states care more about their wallets. The White House's decision to "postpone" clearly does not mean abandoning strategic goals but rather a pragmatic adjustment after weighing pros and cons. This also continues the pattern over the past year and a half: raising the banner of "de-risking" while quietly easing measures in areas related to people's livelihoods. Realism is gradually overshadowing idealism.
Original article: toutiao.com/article/1853172834301956/
Statement: This article represents the personal views of the author.