Goldman Sachs warns furniture prices jump 20% from tariffs

Goldman Sachs economists predict American consumers will absorb 67% of Trump tariff costs by October 2025 as companies exhaust margin cushions

Trump announced August 22, 2025 furniture imports will face new tariffs within 50 days following completion of national security investigation, promising to bring jobs back to North Carolina, South Carolina, and Michigan

Furniture and bedding prices already increased 0.4% in June and 0.9% in July 2025 after earlier China and Vietnam tariffs took effect

U.S. imports over $20 billion in furniture annually, with China and Vietnam as the top two sources of imported furniture

Federal Reserve Chair Powell confirmed at Jackson Hole that tariff effects on inflation are affecting Fed monetary policy decisions

Furniture retailers report manufacturers initially absorbing 10-20% tariff costs but will pass through higher rates directly to shoppers

Average American family expected to pay between $1,200 to $3,500 annually in additional costs depending on tariff implementation