On April 1, a “Furniture for America” coalition of companies submitted comments to the U.S. Department of Commerce in response to the department’s Section 232 investigation to determine the effects on national security of timber and lumber imports.
The group, spearheaded by AHFA, concluded that Section 232 duties on timber, lumber and derivative products (including home furnishings) would harm the domestic furniture industry and the American public.
Furniture for America is a coalition of American companies – both domestic manufacturers and importers – many of which are members of AHFA. The companies submitted information via a confidential survey circulated by AHFA’s trade attorneys. The information collected included company data along with individual corporate perspectives on the potential impact of duties on timber, lumber, wood products and furniture. Collectively, the responding companies have a presence in all 50 states and have more than 10,000 direct U.S. employees. They also support countless downstream U.S. jobs reliant on the furniture industry, including long-haul truckers, sales associates, retail operations, design teams and more. (The identity of the responding companies is not known by AHFA.)
In the 21-page document, the coalition asserts that there is no rational relationship between imports of wood products or furniture and the national security of the United States – a criterion that must be met to impose Section 232 duties.
The coalition expressed support for the President’s mission to strengthen the wood products industry and bring industry jobs back to the United States. However, the group stressed that increasing tariffs on imported home furnishings cannot solve the most critical issue today’s domestic producers face: a manufacturing labor shortage. A dramatic wave of reshoring would intensify competition for workers – a battle many domestic producers are already losing to higher-paying trades and the burgeoning tech industry.
The coalition further explains how tariffs or restrictions on imported downstream goods will directly impact “the hardworking middle class of this country at a time when they are already struggling.” The narrative explains how sales of home furnishings are inextricably linked to the housing market. “Because the housing market has been stalled in recent years, the American furniture industry has been suffering its own unique recession. Placing tariffs on imported timber and lumber will raise the price of new housing and existing home remodels, which will worsen the plight of homeowners and the vital American housing industry.”
In addition, tariffs on imports would disproportionately impact lower- and moderately-priced wood furnishings, leaving lower- and middle-income families priced out of the market for new furnishings.