FIN DeskOriginally published May 23, 2025. This version was rebuilt from the President's posts as archived by the American Presidency Project, Williams-Sonoma's results, NAR's April existing-home sales report and the Census Bureau's April new home sales report for the FIN archive, and the facts are as of that date.
On May 23, 2025 a new tariff threat aimed at Europe landed on the same week a premium home retailer showed demand was holding up.
The short version
- The President recommended a 50% tariff on the European Union starting June 1.
- Williams-Sonoma reported comparable brand revenue up 3.4%.
- Existing-home sales slid 0.5% in April, while new home sales jumped 10.9%.
A 50% threat on Europe
The President said he was recommending a straight 50% tariff on the European Union starting June 1, with no tariff on products built in the United States. For importers of European upholstery and decor, that meant pricing a possible jump within about a week.
Update. Two days later the deadline was extended to July 9.
Premium demand holds
Williams-Sonoma said first-quarter comparable brand revenue rose 3.4%, with an operating margin of 16.8%, and it reiterated its full-year outlook.
Housing sends mixed signals
NAR said on May 22 that existing-home sales slid 0.5% in April to an annual rate of 4.00 million, 2.0% below a year earlier. The median price rose 1.8% to $414,000, and inventory jumped 9.0% to 1.45 million homes, or 4.4 months of supply.
A day later the Census Bureau and HUD reported new single-family home sales at an annual rate of 743,000 in April, up 10.9% from March and 3.3% above April 2024, though both gains came with wide error margins. Builders had 504,000 new homes for sale, about 8.1 months of supply.
More homes on the market gave buyers choices, but resales, which drive a lot of furniture purchases, were still stuck near 4 million a year.
Watch the deadlines
Tariff threats were arriving faster than they could be planned around. Premium retailers with steady demand had the most room to respond, while a flat resale market kept a lid on move-in furniture buying.
Related on FIN
Sources
- The American Presidency Project, Truth Social posts of May 23, 2025
- The American Presidency Project, Truth Social posts of May 25, 2025
- Williams-Sonoma, Inc., First quarter 2025 results
- National Association of Realtors, Existing-home sales edged lower by 0.5% in April (May 22, 2025)
- U.S. Census Bureau and HUD, New residential sales, April 2025 (May 23, 2025)
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