Tariffs, Trade, and Turbulence. Can U.S. Furniture Manufacturing Bounce Back

Originally published March 28, 2025. This version was rebuilt from the ISM manufacturing report, White House tariff fact sheets and Steelcase and MillerKnoll results for the FIN archive, and the facts are as of that date.

By late March 2025 the question was whether tariffs could bring furniture production back to the U.S. The data showed residential furniture makers struggling while office furniture orders picked up.

The short version

• ISM listed Furniture & Related Products among industries contracting in February.
• Steelcase said fourth-quarter orders grew 9%, driven by 12% growth in the Americas.
• MillerKnoll reported third-quarter orders up 2.7% on sales of $876.2 million.

Residential makers contract

The ISM survey listed Furniture & Related Products among the five industries reporting contraction in February, and among those with lower new orders and employment. The overall Prices Index rose to 62.4% as tariff costs began to flow through.

Tariffs raise the price of imported furniture, but they also raise the cost of imported parts, fabrics and machinery that U.S. plants rely on. Rebuilding domestic capacity also takes skilled labor and years of investment.

Tariffs on Canada and Mexico applied only to goods that do not meet USMCA rules of origin, which kept much North American production flowing duty-free.

Office furniture picks up

Steelcase reported fourth-quarter revenue of $788.0 million and orders up 9%, driven by 12% growth in the Americas. For fiscal 2025, orders grew 4%, and the company targeted mid-single-digit organic revenue growth for fiscal 2026.

MillerKnoll reported third-quarter net sales of $876.2 million, up 0.4%, with orders of $853.1 million, up 2.7%. Its Global Retail business reported orders up nearly 15%.

Can it bounce back

Both companies are based in Michigan, and their order growth showed that U.S. furniture makers could grow when demand returned. Residential makers faced a harder market, with soft housing and cautious shoppers.

MillerKnoll said demand in its contract business was sluggish amid uncertainty related to tariff policy, a reminder that trade policy can hold back domestic producers too.

A mixed answer

Tariffs alone did not bring furniture manufacturing back in early 2025. Office furniture makers with U.S. plants were growing orders, while residential factories were still contracting.

Related on FIN

• Furniture Orders Rose 9%. Factories Still Aren't Hiring for It.
• Furniture Factories Made Less in September

Sources

• Institute for Supply Management, Manufacturing PMI, February 2025
• The White House, Fact sheet adjusting tariffs on Canada and Mexico (Mar. 6, 2025)
• Steelcase, Fourth quarter and fiscal 2025 results (SEC exhibit 99.1)
• MillerKnoll, Third quarter fiscal 2025 results (SEC exhibit 99.1)