UBS On-Air: Market Moves UBS On-Air: Paul Donovan Daily Audio 'National security vanities'
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Sep 26, 2025 New trade tariffs announced by the US impact a range of goods, including furniture and pharmaceuticals, under national security claims. Interestingly, the furniture market might not feel a significant pinch due to consumers being less price-sensitive on durable items. Demand trends reveal a political divide, with Democrat-leaning states showing stronger early-year furniture purchases. Plus, exemptions on pharmaceutical tariffs could reshape pricing dynamics, while households navigate inflation with varied strategies to maintain spending.
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Furniture Tariffs Are Layered On Existing Measures
- President Trump announced tariffs on vanities, soft furnishings, furniture and heavy trucks citing national security.
- These furniture tariffs add to earlier measures after big inventory buildups in March, which have since been drawn down.
Durables Mask Price Sensitivity
- Furniture import and consumer prices have risen this year, and domestic producer prices climbed too.
- Consumers are less price-sensitive for durable goods like furniture, muting immediate effects of new tariffs.
Political Split In Decorating Demand
- Consumption patterns shifted politically this year, with higher decorating demand in Democrat-leaning states.
- That early redecorating may reduce the impact of furniture tariffs now in those areas.