Bloomberg Talks Ethan Allen CEO Farooq Kathwari Talks Trump Tariffs
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Sep 8, 2025 
Farooq Kathwari, Chairman, President, and CEO of Ethan Allen, shares insights on how the furniture industry is navigating the challenges posed by tariffs and a slowing housing market. He discusses the company’s strategic focus on North American manufacturing, which offers an edge amid tariff uncertainties. Kathwari also addresses rising prices and declining store traffic, highlighting the importance of strong client relationships and innovative workforce strategies in U.S. manufacturing. His perspective sheds light on adapting to a rapidly changing market.
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Decades-Long Bet On North American Manufacturing
- Ethan Allen chose to keep and modernize North American manufacturing when many moved offshore.
- The company matched quality across U.S., Mexico, and Honduras plants to stay competitive and service customers quickly.
Standardized Quality Drives Competitive Edge
- Standardizing quality across countries created a service advantage and operational flexibility.
- Making North American output almost entirely custom boosted Ethan Allen's differentiation.
Manage Tariffs By Sharing Costs And Raising Prices
- Share tariff impacts with overseas partners and consider measured price increases.
- Combine partner cost-sharing, selective price hikes, and margin adjustments to manage levy effects.