Contemporary tropical furniture is displayed on Sept. 10 in the Indonesia Pavilion at the Maison&Objet 2019 interior design trade fair in Paris. (JP/Asmara Wreksono)
JAKARTA: The furniture industry is anticipating a potential drop in orders in the coming months as US President Donald Trump slaps new tariffs on imported wood products, alongside his broader “reciprocal” tariffs against goods shipped to the United States from around the world.
Starting on Oct 14, timber and lumber imports will face a special 10% duty, while kitchen cabinets, bathroom vanities and upholstered furniture will be hit with a 25% tariff under Section 232 of the US Trade Act of 1974.
Trump has justified his latest tariff move in a presidential proclamation, saying imports of such goods were weakening the US economy and eroding national security.
The tariffs are set to rise to 30% for upholstered wood products starting on Jan 1, 2026, while countries that fail to reach an agreement with the United States can expect to see a rate of 50% imposed on cabinets and vanities.
“Since the announcement, US buyers have become more cautious, seeking more quotes and rescheduling in the upholstery segment,” said Abdul Sobur, chairman of the Indonesian Furniture and Craft Industry Association.
Exports of unupholstered products continued but were facing pressure from rising global wood prices, Sobur added.
While the market had seen a rush in shipments in recent months as traders sought to move products ahead of various tariff deadlines, new orders after Oct 14 would likely “be reviewed and renegotiated”, he said.
“In the United States, some retailers are delaying upholstery purchases pending clarity on prices and supply, while others are accelerating orders ahead of further hikes,” said Sobur.
“It’s a wait and see versus ‘pull in’ pattern that also shows up in US consumer surveys.”
The additional duties will add to the burden on furniture exporters, whose US-bound shipments were already threatened by Trump’s so-called reciprocal tariff of 19% for Indonesia. — The Jakarta Post/ANN
