Ashley Furniture CEO urges calm, patience amid global tariff upheaval

HIGH POINT — Todd Wanek, CEO of Ashley Furniture Inds., the largest furniture manufacturer and retailer in the United States, cautioned fellow furniture industry executives against taking rash actions in the wake of the Trump administration’s recent announcement of widespread global tariffs.

The announcement earlier this week of 10% tariffs on all U.S. imports, coupled with additional “reciprocal” tariffs as high as 49% on myriad global trading partners, threatened to throw the furniture industry into chaos as many current key sourcing countries were among the hardest hit.

Most concerning to furniture industry executives was the 46% tariff rate on Vietnam, the largest current exporter of furniture to the U.S. and the industry’s primary replacement for Chinese-made goods in the wake of Trump’s 2019 tariffs. With more than $9.4 billion in furniture exports to the U.S. in 2024 Vietnam has grown to 37% of U.S. furniture imports. Similarly, Cambodia, which has been the fastest growing source of U.S. furniture imports over the  past two years, was hit with a 49% tariff rate.

In the wake of these tariffs on other major furniture exporters — including Malaysia, Indonesia, Thailand among others — furniture industry executives have been scrambling to figure out their next moves. The result has been been a chaotic and fearful business climate for furniture manufacturers and retailers.

As the largest domestic manufacturer of furniture, Ashley has been well-positioned to deal with the changing tariff situation. However the company also operates manufacturing operations globally, including in Vietnam, giving Wanek a broad perspective on the changing global sourcing environment.

Recognizing the current industry concern Wanek told Furniture Today, “There is lots happening right now, and we are certain that governmental negotiations are happening over the weekend. The key word for our industry is to stay calm and do not change your strategy until we learn more.”

Wanek’s cautionary advice comes as furniture industry stocks have been battered by the initial tariff announcement and further disrupted by China’s announcement on Friday of reciprocal tariffs of 34% on all U.S. imports to China.

See also:

• Mattress makers see price increases, volatility and more in Trump’s tariff move
• Case good importers agree: If tariffs stay as they are, price increases are certain