145% Tariffs Loom as Furniture Industry Braces for August Deadline

Originally published June 11, 2025. This version was rebuilt from the May 12 executive order on China, Target's first quarter results and Census for the FIN archive, and the facts are as of that date.

In June 2025 furniture importers were working against an August deadline on China. The peak rates of April were still on many minds, but the actual risk was smaller.

The short version

• A May 12 order cut the reciprocal rate on China to 34% and suspended 24 points of it for 90 days.
• Target reported first-quarter net sales of $23.8 billion, down from $24.5 billion.
• Census showed April furniture store sales up 7.8% from a year earlier.

What the deadline really meant

Executive Order 14298 replaced the 125% reciprocal rate on China with 34% and suspended 24 points of that for 90 days, leaving 10% in place. The pause began May 14, so it ran to August 12, not August 10.

If the pause lapsed, the order meant the reciprocal rate would rise to 34%, not return to the 125% reciprocal rate of April. Other China tariffs already in place would still stack on top.

Update. An August 11 order extended the pause to November 10, and the Supreme Court later ruled that IEEPA does not authorize these tariffs.

Target slips

Target reported first-quarter net sales of $23.8 billion, compared with $24.5 billion a year earlier, with comparable sales down 3.8%. Home furnishings and decor sales fell to $3.22 billion from $3.52 billion.

Furniture stores still growing

The Census Bureau's advance estimate showed April sales at furniture and home furnishings stores up 0.3% from March and 7.8% from a year earlier.

Plan for the real number

The worst case on China was far below the April peak. Importers who priced against the real exposure could plan without panic.

Related on FIN

• Follow the Tariff Dollars
• Every Door in Town

Sources

• The White House, Modifying reciprocal tariff rates to reflect discussions with China (May 12, 2025)
• The White House, Further modifying reciprocal tariff rates to reflect ongoing discussions with China (Aug. 11, 2025)
• Supreme Court of the United States, Learning Resources, Inc. v. Trump, opinion (Feb. 20, 2026)
• Target Corporation, First quarter 2025 earnings
• U.S. Census Bureau, Advance monthly retail sales, April 2025