In the wake of President Donald Trump’s sweeping tariffs on imported goods, flooring industry executives are bracing themselves for the expected economic fallout.
On April 2, Trump announced tariffs of at least 10% on practically all goods coming into the United States, plus even higher rates on dozens of countries that have the highest trade deficits with the United States.
The new policy includes 25% tariffs on all foreign-made automobiles. In addition, a group of about 60 or so countries, which Trump labeled the “worst offenders,” will be charged a tariff at half the rate they charge the United States—including China (34% tariff), Vietnam (46%) and Cambodia (49%).
While Trump said he is targeting “unfair” foreign trade barriers, many economists warn that he is steering the U.S. economy toward slower growth and higher prices.
On April 1, the day before the tariff announcement, The Yale Budget Lab tabulated that a move toward true blanket tariffs would fuel inflation by more than 2% and—assuming no countermeasures from the Federal Reserve—create a loss of buying power of $3,400-$4,200 per U.S. household.
The researchers added that 20% duties, if added to the existing tariffs, would make the average effective U.S. tariff rate the highest since 1872 at 32.8%.
A previous estimate from the Tax Foundation also put the cost in the thousands and found that 20% blanket duties would represent an average tax increase on U.S. households of $2,045.
FCNews reached out to manufacturers, distributors and retailers, all of whom stand to be impacted to varying degrees.
For Scott Rozmus, president/CEO of flooring distributor FlorStar Sales, Romeoville, Ill., it is the effect on the overall economy that is most concerning. “Once the industry has details about the tariffs, everyone will adjust and adapt as best as we can,” Rozmus said. “The bigger issue is the impact tariffs may have on the broader economy in the short term. Uncertainty associated with tariff impacts and concerns over how the stock market reacts to the tariffs might ‘spook’ consumers and businesses alike to pull back on spending. Those behaviors will be more impactful, albeit indirectly, on the floor covering
