English
Trump Tariffs: US President Donald Trump has announced plans to impose tariffs on furniture imports, stating that investigations will be completed in the next 50 days, following which his administration will decide how much import duty must be slapped on furniture exports coming into the United States.
According to analysts, the decision to slap tariffs of furniture imports is in line with Trump’s “America First” policy as the US President believes that higher tariffs will force foreign goods to compete with American-made goods in the US market, which will strengthen US industry and force foreign firms to shift manufacturing inside the country, leading to more jobs for US workers.
Donald Trump specifically mentioned states like North Carolina, South Carolina and Michigan, which were once major hubs of the furniture industry, but most firms moved manufacturing to other countries due to cheap labor and lower production costs. Trump believes that higher tariffs will force companies to once again shift their manufacturing to the US.
As per reports, the proposed Trump tariffs on furniture imports are part of a ‘comprehensive strategy’ by the Trump administration to hike import duty on a range of other other goods, including copper, semiconductors and pharmaceuticals. The higher tariff rates are aimed at boosting domestic production, reduce foreign dependence and re-strengthen industry and employment in the US.
Notably, Trump tariffs on furniture will have a profound impact on India as the country exports a significant amount of furniture to the US.
Meanwhile, Trump’s fresh tariff announcement made an immediate impact in the US stock market as the shares of major furniture and home goods firms such as Wayfair, RH and Williams-Sonoma tumbled, while stocks of US furniture manufactures like La-Z-Boy witnessed a rise.
As per analysts, Trump’s proposed tariffs on furniture imports will benefit domestic firms as foreign goods will be too expensive for the average American consumer.
According to media reports, the US Department of Commerce is currently investigating the matter under Section 232 of the Trade Expansion Act, 1962, which allows US government to impose tariffs on goods and services considered essential to national security. The investigation is scheduled to be completed in the next 50 days, so the tariffs on furniture will likely be announced sometime in October.
Currently, its unclear whether the fresh tariffs will be imposed on top of the existing duty or replace it.
Notably, the US had a booming furniture industry in the past, employing over 1.2 million people, as per 1979 data. The number has dropped to just 340,000 as most companies outsourced manufacturing to other countries due to low production costs and cheap labor.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest World News on India.com.
