Tariffs Start This Weekend as Furniture Makers Restructure

Originally published January 31, 2025. This version was rebuilt from the America First Trade Policy memorandum, Executive Order 14195 and releases from Dorel and Bassett for the FIN archive, and the facts are as of that date.

The last day of January 2025 was the last calm before the first tariff orders. Furniture makers were restructuring and preparing for higher costs on goods from Canada, Mexico and China.

The short version

• The America First Trade Policy memo ordered trade reviews with recommendations due April 1.
• Dorel announced the closure of its Montreal manufacturing operations.
• Bassett reported fourth-quarter sales of $84.3 million, down 11.0%.

Tariffs are back

A January 20 memorandum directed agencies to review trade deficits, trade agreements and the $800 duty-free de minimis exemption, with most recommendations due April 1. Tariffs on Canada, Mexico and China were expected to be announced that weekend.

Update. On February 1 an order imposed an additional 10 percent duty on products of China, with companion orders for Canada and Mexico. On February 3 the Canada tariffs were paused until March 4.

Dorel restructures

Dorel announced a significant restructuring of its Home segment, saying revenue expectations require a much smaller footprint than in the past. The plan included closing its manufacturing operations in Montreal, cutting SKUs and reducing distribution space.

Dorel had already closed its Tiffin, Ohio factory and consolidated production at Cornwall, Ontario. The company said equipment transfers and facility upgrades at Cornwall were mostly complete.

Bassett's comeback

Bassett reported fourth-quarter sales of $84.3 million, down 11.0% from $94.7 million, with wholesale down 13.7% and retail down 8.3%. Operating income was $0.9 million after a loss of $4.5 million a year earlier.

The return to profit came from cost cuts and restructuring rather than sales growth, a pattern seen at several domestic makers heading into 2025.

What's next for 2025

Restructuring at Dorel and cost cuts at Bassett showed makers bracing for another slow year. The tariff orders that followed within days would add new costs for anyone sourcing from China, Canada or Mexico.

Related on FIN

• Follow the Tariff Dollars
• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.

Sources

• The White House, America First Trade Policy memorandum (Jan. 20, 2025)
• The White House, Executive Order 14195 on China (Feb. 1, 2025)
• The White House, Executive Order 14197 on Canada (Feb. 3, 2025)
• Dorel Industries, Major Home segment restructuring (Jan. 30, 2025)
• Bassett Furniture, Fiscal fourth quarter results (SEC exhibit)