President Donald Trump’s administration has announced a new wave of global tariffs, with drastic implications for new home buyers.
As of October 14, there will be a 25% tariff applied to upholstered furniture. Kitchen cabinets and bathroom vanities will also be slapped with a 25% increase. On January 1, 2026, those tariffs will climb further: furniture will rise to 30%, while cabinet and vanity tariffs will double to 50%.
What it Means for New Home Buyers: Shoppers will likely see the increased price of cabinets and bathroom vanities built into the overall cost of their new home. Higher furniture prices will strain the budgets of many American homebuyers; many of whom are already counting every dollar they spend.
"For homeowners already grappling with high inflation in construction, these duties mean kitchen and bathroom upgrades for new homes will become even more expensive,” said Kyle Peacock, founder of Peacock Tariff Consulting.
“While there is an upside for furniture manufacturers in the Midwest and Southeast with less international competition, many U.S. furniture plants have been downsized over the past two decades. Scaling up production quickly will be difficult due to labor shortages, limited capacity, and supply chain constraints of items such as foam and textiles. Gains are possible, but they will be incremental, not immediate."
Producing Home Items Requires a Global Network
A vast number of furniture, cabinetry, and vanities labeled “Made in the USA” rely on a global network. Assembly may occur in the U.S., in a local factory employing American workers. However, from textiles to cabinet hardware, many of the components needed to complete home items come from around the world.
A single sofa, for example, may involve dozens of suppliers. “It can have up to 73 bits and pieces in it, and those don't come from one country,” said Leslie Carothers, principal of Savour Partnership. “They come from multiple countries.”
Calls to shift production entirely back to the U.S. run into income limits. “The median income in the U.S. [for the upper-middle-class] right now is $74,000,” said Carothers. “The average American family just cannot afford expensive furniture on that budget. If we were to bring all the bits and pieces back [to the U.S. for production], the price would be so expensive very few could afford it.”
Meanwhile, big box stores are producing items that are completely made overseas.
If you’re planning to buy a new home soon, it’s time to strategize to prepare for higher costs ahead.
Tips for Buyers
Budget early. If you are closing on a new home, factor in higher furnishing costs for 2026, regardless of whether you’re going with the base model of cabinets and vanities, or upgrades.
Shop second-hand smartly. Carothers points out that “thrift and vintage furniture prices are rising”, but quality resale items still stretch dollars further than many newer pieces in the long run.
Buy sooner if possible. With tariff hikes scheduled for January, waiting may prove more costly.
Focus on durability for your new furniture. Cheaper “value engineered” furniture may not last, leading to replacement costs down the road.
The Bottom Line: New tariffs on furniture, cabinets, and vanities are expected to quickly ripple through the market. Manufacturers are facing financial uncertainty, retailers are raising prices, and consumers are at their limit. For homebuyers, furnishing a new space in 2026 will be more expensive and more complicated, making careful planning more important than ever.
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