Business

High Point cabinet maker may beneift from new Trump tariffs

High Point cabinet maker may beneift from new Trump tariffs

A coalition of U.S. kitchen cabinet manufacturers have successfully appealed to President Donald Trump to implement steep tariffs on what they claim are “unfairly traded” imported products.
Trump on Friday announced tariffs on imported cabinets and furniture: a 50% tariff on kitchen cabinets, bathroom vanities and related products; and a 30% tariff on upholstered furniture.
The American Kitchen Cabinet Alliance, which represents the $14 billion American cabinet industry, includes High Point’s Marsh Furniture among its members.
On Wednesday, the group urged Trump to sign a presidential proclamation imposing “a robust” tariff rate on lumber and derivative products, including cabinetry.
The alliance had sought a 100% tariff on kitchen cabinets.
Before Trump’s tariffs decision, Edwin Underwood, president and chief operating officer of Marsh Furniture, said much of the U.S. home furnishings manufacturing sector “has been wiped out by unfair foreign trade practices.”
“We must not allow history to repeat itself with domestic cabinet manufacturing.
“We respectfully call on President Trump to sign the presidential proclamation into law and impose a 100% tariff rate with no exceptions or exemptions so we can rebuild American cabinet manufacturing and make our country great.”
A nationwide investigation into wood, timber and derivative products began in March.
According to the 15 chief executives who signed the letter, “250,000 good-paying American manufacturing jobs are on the line due to the flood of unfairly traded foreign cabinets and component parts from Vietnam, Malaysia, Cambodia, China, Mexico, Indonesia and Thailand overwhelming the U.S. market.”
“Due to the continued flood of underpriced kitchen cabinet imports from countries across the globe, the U.S. kitchen cabinet industry is on the brink of collapse, with plants shutting down across the country.
“Imported cabinets are being sold at up to 70% below domestic prices, and if nothing changes fast this critical domestic industry will be wiped out.”
The Associated Press reported that Trump “appeared to stretch the bounds of his role as commander-in-chief by stating on Truth Social that the taxes on imported kitchen cabinets and sofas were needed ‘for National Security and other reasons.’ ”
U.S. Sen. Katie Britt, R-Ala., praised Trump’s tariffs decision, saying that “countries like China have spent years illegally dumping subsidized kitchen cabinets into the U.S., devastating longstanding American businesses.
“I led a letter earlier this year asking for President Trump and Secretary Lutnick to put an end to this. I’m grateful they’ve taken action.”
However, it is likely that in the short term, U.S. consumers of kitchen cabinets will pay a higher price at retail while U.S. manufacturers attempt to restock inventory.
rcraver@wsjournal.com
336-727-7376
@rcraverWSJ
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