U.S. market faced potential elimination with Arredo's 30% tariffs
The furniture industry in Italy could face significant challenges due to a proposed 30% import duty on Italian wood furniture exports to the United States. This tariff, if implemented, would increase the cost of these products in the US market, potentially reducing their competitiveness and demand.
Claudio Feltrin, president of FederlegnoArredo, has expressed concern about the potential impact of this duty. He notes that the effective cost of Italian furniture for US buyers could increase by as much as 40%, a figure that could be unsustainable for some companies.
The devaluation of the US dollar against the euro further complicates this situation. A weaker dollar means US importers must spend more dollars to buy the same amount of euros, making Italian exports more expensive in dollar terms. Together, the tariff and currency valuation effects create a double cost disadvantage for Italian exporters.
This proposed duty could lead to a decline in Italian wood furniture exports to the US. Export volumes and revenues for Italian wood furniture producers could decrease, potentially causing job losses in the industry. US buyers might also shift towards domestic furniture manufacturers or suppliers from countries not subject to such high tariffs.
The furniture sector is a significant contributor to Italy's economy. In 2024, it generated €14.4 billion in exports, with the US market being the second-largest at €1.7 billion. The Italian wood-furniture industry generated €51.7 billion in revenue the same year.
However, the first quarter of 2025 saw a 3% increase in exports to the United States for the entire wood-furniture industry. Despite this growth, overall exports remained stagnant compared to the first quarter of 2024.
The proposed duty could also affect business investments in the furniture industry. If final customers lose purchasing power due to higher prices, companies targeting the high-end market could be particularly impacted.
The United States is one of the few major destination countries that has maintained its growth in the past two years. The potential economic impact of the proposed duty on the furniture industry, as highlighted by Claudio Feltrin, could be significant.
[1] Regions with diversified exports and a less reliance on furniture exports may be less affected overall.
- The finance sector might experience increased activity due to the potential decline in Italian wood furniture exports to the US, as companies in the industry might seek loans to counteract the increased costs brought about by the proposed 30% import duty.
- In the retail sector, US buyers could choose to purchase furniture from other manufacturing industries, such as domestic or foreign ones not subject to high tariffs, in response to the potential price increase of Italian wood furniture resulting from the proposed 30% import duty.
