Furniture Under Fire. Tariffs, Tech & the Race to Adapt

Originally published June 2, 2025. This version was rebuilt from a CBP CSMS message, the Conference Board and the ISM May manufacturing report for the FIN archive, and the facts are as of that date.

As June 2025 began, importers had a new Customs deadline to watch and consumers were feeling better than they had in April.

The short version

• CBP said in-transit exceptions generally require entry before June 16.
• The Conference Board's confidence index rose 12.3 points to 98.0 in May.
• ISM's May survey listed furniture among seven manufacturing industries reporting growth.

The in-transit window closes

U.S. Customs and Border Protection updated its guidance to say it is generally not realistic for shipments to qualify for the in-transit exceptions unless entered before June 16. Goods loaded before the April tariff dates but still sitting in warehouses or bonded storage would lose the lower rate.

Confidence bounces

The Conference Board's index rose 12.3 points to 98.0 in May, after five straight monthly declines. About half the responses came in after the May 12 announcement of a pause on some China tariffs. The expectations index rose to 72.8 but stayed below the recession signal of 80.

Furniture factories turn up

The ISM report released June 2 put the May manufacturing PMI at 48.5%, a third straight month of contraction, and its Imports Index plunged to 39.9%. Furniture and related products bucked the trend. It was one of seven industries reporting growth and one of the industries with rising new orders.

Furniture also topped the list of industries reporting higher inventories and was one of four reporting growing order backlogs. It was one of only three industries with growing export orders, but furniture makers still reported lower production, fewer imports and higher prices for raw materials.

ISM's chair said slower deliveries across manufacturing were driven by tariff concerns and advancing material deliveries. Stock built ahead of tariff dates would have to be worked down later in the year.

Better mood, tighter rules

Consumers were feeling better, but importers had a firm date to clear old shipments. The window for tariff planning was getting narrower.

Related on FIN

• Follow the Tariff Dollars
• Furniture Shoppers Are Holding Back

Sources

• U.S. Customs and Border Protection, CSMS 65201773, in-transit exceptions guidance (May 30, 2025)
• The Conference Board, Consumer confidence, May 2025
• Institute for Supply Management, May 2025 Manufacturing ISM Report On Business (June 2, 2025)