CHINA – According to a report by the International Tropical Timber Organization (ITTO), the sharp increase in U.S. tariffs—up to 170% on Chinese furniture—has severely impacted China’s furniture export sector.

Companies like Yihe Furniture in Guangdong have suspended operations, citing losses caused by the new trade policy.

In 2024, China exported approximately USD 31.3 billion worth of furniture, bedding, and lighting to the U.S. But with profit margins typically under 10%, the added tariff burden is driving many firms to the brink.

Over 20% of small and medium-sized exporters are facing serious financial strain, dealing with cancelled orders, inventory buildup, and cash flow issues.

The crisis affects the entire industry chain, including raw material suppliers, logistics, and design companies. While the U.S. frames the tariffs as a boost to domestic manufacturing, American consumers are feeling the impact too, with retail prices for some furniture rising over 20%.

The ITTO notes that these challenges may accelerate the transformation of China’s furniture sector toward innovation, brand development, and market diversification.