RH and Wayfair Shares Climb as Trump Delays Furniture Tariffs Again

• Wayfair surged over 125% in 2025 and gained more than 2% on the news, while luxury retailer RH added nearly 5% despite being down over 50% for the year
• The furniture sector has faced significant pressure from tariff concerns, with RH's CEO notably reacting with an expletive during an April earnings call as the stock tanked
• Retailers have seen divergent performance based on their positioning, with value-focused players like Wayfair outperforming luxury brands amid consumer spending shifts

Market Summary: Furniture Retailers Rally on Trump Tariff Delay

Furniture retail stocks surged Friday morning after President Trump announced a one-year pause on increased tariffs for upholstered furniture, kitchen cabinets, and vanities. The delay prevented duties from rising to 30% as scheduled on Thursday, maintaining the current 25% level set in September.

Key Stock Movements:

• RH (Restoration Hardware): +5%
• Williams-Sonoma: +1%
• Wayfair: +2%

Trump cited ongoing trade discussions as the rationale for postponing the tariff increases, providing temporary relief to furniture importers facing cost pressures.

Market Context:

The furniture sector has experienced significant volatility amid tariff concerns. Wayfair has been a standout performer, surging over 125% in 2025 as value-focused retailers gained traction with consumers. Conversely, Williams-Sonoma declined 3% last year, while RH experienced a dramatic 50% drop in 2024.

The tariff uncertainty has particularly impacted RH, whose CEO Gary Friedman expressed visible frustration during an April earnings call when the stock plummeted on tariff news. Friedman acknowledged the company's exposure to Asian sourcing, which is detailed in their 10-K filings.

Implications:

This tariff delay offers short-term relief for furniture importers heavily reliant on overseas manufacturing, particularly from Asia. However, the one-year timeline suggests continued uncertainty for the sector, as companies must still prepare for potential 30% duties in 2027. The varied stock performance reflects investors' assessment of each company's pricing power, sourcing flexibility, and market positioning amid evolving trade policies.