The Trump administration has officially delayed the implementation of new tariff increases on upholstered furniture, kitchen cabinets, and vanities by one year, pushing the effective date to 2027. This development follows a report by Raymond James, which highlights the administration's adjustment to trade policies initially set in motion last September.
Originally, a presidential order had established a 25% tariff on these categories effective from October, with rates scheduled to escalate significantly—up to 50% for kitchen cabinets and 30% for upholstered furniture—by 2026. Under the new guidance, these tariffs will remain at the current 25% level for an additional year, providing a temporary reprieve for importers.
The Raymond James report identifies China and Vietnam as the primary sources of imports likely to be affected by these measures. The delay is of particular interest to investors in companies like Whirlpool (NYSE:WHR), which has been flagged as a key area of client interest. Whirlpool has faced a challenging period, with its stock declining approximately 33% over the past six months and struggling with profitability over the last year. Despite these headwinds, the company has maintained its dividend streak for 55 consecutive years, currently yielding around 4.99%.
In the broader market, the report notes shifting pricing dynamics. Cabinetworks has announced price increases of 4.5% to 6.5% for its kitchen cabinets and vanities starting in January. Conversely, the cost of raw materials shows a different trend; the U.S. lumber price index has seen a decline of 12% year-over-year, alongside marginal drops on a monthly and weekly basis.
