As we approach the end of 2025, new market pressures and tariffs are reshaping the furniture industry — driving up the cost of furniture parts and challenging profitability. At IFS, our decades of industry expertise and diversified sources helps you maintain a competitive edge and control costs.
Current Industry Pressures: How Tariffs and Rising Costs Are Reshaping Furniture Manufacturing
As of October 14, 2025, the U.S. furniture industry faces one of the most significant policy shifts in recent years: the introduction of new Section 232 tariffs. These tariffs directly affect nearly every stage of the furniture manufacturing supply chain — from raw timber to finished cabinetry — and are expected to raise production costs across the board.
At the same time, the recently enacted Big Beautiful Bill Act introduces an important financial counterbalance. While the tariffs increase expenses for manufacturers and suppliers, the Act raises the cap on the state and local tax (SALT) deduction from $10,000 to $40,000, offering meaningful relief to many business owners. This change could help offset some of the new cost pressures created by Section 232, especially for companies operating in high-tax states or managing multiple facilities.
Here’s what’s now in effect:
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10% tariff on softwood
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10% tariff on timber
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10% tariff on lumber
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25% tariff on finished furniture
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25% tariff on cabinetry
These increases are already creating ripple effects throughout the industry, driving up production costs, tightening margins, and placing added pressure on manufacturers, suppliers, and distributors. Companies that rely heavily on imported materials or finished components are being hit the hardest, forcing many to reconsider their sourcing and pricing strategies.
Preparing for 2026: What Furniture Manufacturers Should Anticipate
Unfortunately, these cost pressures won’t end in 2025. Beginning January 1, 2026, even higher tariffs are expected to take effect — signaling another wave of challenges for furniture manufacturers and suppliers.
Projected 2026 tariff increases:
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30% tariff on finished furniture
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50% tariff on cabinets and vanities
These changes could significantly alter the cost landscape for U.S. manufacturers, particularly those dependent on imported wood products or ready-made components. To remain competitive, businesses will need to focus on strategic sourcing, supplier diversification, and operational efficiency.
At International Furniture Supply (IFS), we’re helping our partners navigate this evolving market by developing smart sourcing strategies and reliable supply solutions that minimize disruption and maintain profitability — even as global trade conditions shift.
Our Advantage: How IFS Helps Control Costs and Streamline Supply
Founded in 1977 by Charles “Chuck” Frees, International Furniture Supply (IFS) was built on a simple but powerful vision: to provide dependable, high-quality furniture supplies backed by exceptional customer service. Chuck’s passion for the industry began early, working alongside his parents at Paragon Sales, a respected upholstery materials business. That foundation instilled in him a deep understanding of both craftsmanship and customer care—values he later passed on to his son, Patrick Frees.
Today, Chuck and Patrick combine decades of hands-on experience to carry forward that original vision, continuing to support manufacturers and upholsterers with the quality, reliability, and partnership that IFS is known for.
This isn’t the first time the Frees family has navigated difficult seasons in the furniture supply industry. The post-pandemic era, for example, brought significant disruption—unstable shipments, inflated material costs, and mounting inventory risks. Yet IFS remained steady, adapting quickly to market shifts to help customers maintain efficient, cost-effective operations when it mattered most.
Thanks to a diverse, long-standing network of suppliers, IFS can strategically source materials even in volatile conditions, ensuring customers receive the best value and minimal interruption to their supply chain. As new tariffs and economic pressures reshape the market once again, businesses will need trusted partners who can streamline logistics and protect their margins.
By partnering with International Furniture Supply, your company gains more than materials—you gain a dependable ally dedicated to saving you time, money, and stress, so you can stay focused on what you do best.
Let’s Work Together: Building Stronger Supply Partnerships
When getting the supplies you need feels impossible, it’s time to call in the experts at IFS. As you plan for 2026, partner with a team that knows how to navigate challenges and deliver results. Give us a call — and talk to a real person who’s ready to help you keep your business moving forward.