Expect to Pay More for Furniture, Everything Else Imported Too

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by Mike Shedlock

This article has specific furniture examples, but the idea translates to all imported goods.

Expect to Pay More for Everything

The Wall Street Journal reports Your Patio Furniture Set Is Going to Cost a Lot More This Summer

Sunnydaze Decor sells affordable outdoor furniture, fire pits and flower pots on Amazon.com, much of it made in China. The costs of the Trump administration’s new tariffs have kicked in on many of those items, so Chief Executive Chuck Gregorich is rolling out higher prices in June.

Gregorich has paid a tariff on products made of steel since 2018, when Trump put a 25% levy on imports of the metal.

Now, he must pay a 20% tariff on goods from China, and an additional 25% tariff on imports containing steel. Because this bistro set is subject to the newest steel tariff, it is exempt from the reciprocal 10% tariff on Chinese goods.

Gregorich plans to raise the price of the bistro set to $305, which will also boost the costs due to Amazon.

Wicker Furniture

Parts of this set contain steel, so Gregorich pays the 25% steel tariff from 2018, as well as the new 20% tariff on imports from China.

The set is also subject to this year’s new steel tariff, which is based on the amount of steel contained in a product. In this case, the wicker furniture set’s frame is made of $90 worth of steel, so the 25% duty is assessed on $90.

Factoring in other costs, Gregorich will lose money if he keeps the price steady. He plans to raise it to $686 to cover the additional tariff costs, as well as increased Amazon fees.

Expect Price Hikes Across the Board

Walmart and Target have already announced price hikes to Trump’s Ire.

Trump publicly blasted Apple and Walmart in nonsensical rants. The irony is stunning because he now sounds like Elizabeth Warren.

Forget About Fed Rate Cuts

  • Unless we see a collapse in jobs, the Fed will be on hold.
  • The odds of a rate cut in June are down to 5.6 percent from 63.3 percent a month ago
  • The odds of a single rate cut in July are down to 25.1 percent from 92.1 percent for more than one cut month ago.