Steel Tariffs, Tariff Tensions, Inflation, and More

Originally published February 12, 2025. This version was rebuilt from White House fact sheet on Section 232 tariffs, the BLS consumer price index and Flexsteel's results for the FIN archive, and the facts are as of that date.

The middle of February 2025 brought more tariffs and a hot inflation report. Furniture prices were one of the few places shoppers saw any relief.

The short version

• The White House said it would restore a 25% tariff on steel and raise aluminum to 25%.
• BLS said consumer prices rose 0.5% in January and 3.0% from a year earlier.
• The household furnishings and supplies index fell 0.2% in January.

Steel and aluminum tariffs

On February 10 the President signed proclamations to restore a true 25% tariff on steel and elevate the tariff to 25% on aluminum, closing exemptions and loopholes. The fact sheet said the action also covered more derivative products.

Steel and aluminum go into motion and recliner mechanisms, bed frames, outdoor furniture and office seating. Higher metal costs would reach domestic and imported furniture alike.

Keeping up with inflation

BLS said the Consumer Price Index rose 0.5% in January after 0.4% in December, and 3.0% over 12 months. The index excluding food and energy rose 0.4% for the month and 3.3% for the year.

Household furnishings and operations were among the few major indexes that decreased in January. The household furnishings and supplies index fell 0.2% for the month and 0.9% from a year earlier, showing retailers were still discounting to move goods.

Tariff tensions for makers

Flexsteel had warned that orders to implement 25% tariffs on Mexico and Canada could materially change its outlook given its sizable operations in Mexico. Those tariffs were paused until March 4.

With metal tariffs coming and North American tariffs on hold, makers had to price new orders without knowing what their costs would be a month later.

Key takeaways

Furniture prices were still falling at retail even as tariffs on metals and imports built up behind them. The gap between cost and price would be the story of 2025.

Related on FIN

• Follow the Tariff Dollars
• Furniture Sales Rose. Costs Are Rising Faster.

Sources

• The White House, Fact sheet restoring Section 232 tariffs (Feb. 11, 2025)
• U.S. Bureau of Labor Statistics, Consumer Price Index, January 2025
• Flexsteel Industries, Fiscal second quarter 2025 results (SEC exhibit 99.1)
• The White House, Executive Order 14197 on Canada (Feb. 3, 2025)