The latest wave of import tariffs on upholstery materials is generating a mix of opportunity and concern for U.S.-based textile manufacturers. While the elevated duties are making domestic products more price-competitive, the unpredictability of trade policy is causing hesitation in long-term investment and hiring decisions.
U.S. textile producers are seeing increased interest from furniture manufacturers seeking alternatives to imported fabrics, particularly those sourced from regions now facing significantly higher tariffs. Domestic producers report a sharp uptick in inquiries and sample requests, as buyers reconsider their sourcing strategies.
Some U.S.-made fabrics, once priced above imported options, are now considered cost-effective after the introduction of base tariffs as high as 145% on certain foreign goods. For example, a fabric previously imported at $2.50 per yard may now effectively cost $5 to $6 per yard—making a comparable domestic product at $3 more attractive.
Despite the shift in pricing dynamics, many manufacturers remain cautious. Ongoing uncertainty about whether tariffs will remain in place, be reduced, or extended to additional regions has led businesses to delay expansion plans. For those considering increasing capacity or adding shifts, the risk of sudden policy reversal is too high to justify immediate investment.
The domestic textile industry has experienced a significant contraction over the past two decades. According to labor statistics, employment in U.S. textile mills has declined by nearly 80% since the late 1990s. Meanwhile, textile import volumes continue to grow, with over 1.6 billion square meters entering the U.S. last year for use in home furnishings alone.
Manufacturers with both domestic and international operations are now rebalancing their supply chains. Some are shifting production closer to home, especially for high-demand items, while others are evaluating sourcing from alternative countries that currently face lower tariffs. Countries such as India and Turkey, for instance, are seeing increased consideration from buyers due to their relatively lower duty exposure.
Still, concerns loom over potential downstream effects. If higher import costs are passed along to end consumers, it could dampen demand for large-ticket items such as sofas and sectionals. A slowdown in housing activity or a broader economic downturn could further weigh on the home furnishings market.
Industry leaders are calling for greater clarity and stability in trade policy to support long-term planning, job creation, and reinvestment in domestic manufacturing. Until then, most textile producers are proceeding cautiously, navigating the shifting landscape while preparing for both opportunity and risk.
