90-Day Tariff Truce: What the U.S.-China Agreement Means for the Furniture Industry

On May 12, 2025, the United States and China announced a significant 90-day pause in their escalating trade war, agreeing to reduce tariffs on each other’s goods. This temporary truce aims to provide a window for further negotiations and to alleviate some of the economic pressures resulting from the ongoing trade tensions.

Key Details of the Agreement:

• Tariff Reductions: The U.S. agreed to lower tariffs on Chinese imports from 145% to 30% (which is comprised of 20 % for Section 232 and the 10% Ad Valorum Reciprocal), while China reduced its tariffs on U.S. goods from 125% to 10%.

• Retention of Baseline Tariffs: Despite these reductions, both countries will maintain a baseline tariff of 10% on each other’s goods during the 90-day period.

• Exclusions: Certain sector-specific tariffs, such as those related to automotive, steel, aluminum, and measures addressing the fentanyl crisis, remain in effect.

Implications for the Furniture Industry:

The furniture industry, which has been significantly impacted by the trade war, stands to benefit from this temporary easing of tariffs. Companies like Zuo Modern, known for their contemporary designs and global sourcing strategies, may experience relief in their supply chains and cost structures.

However, it’s important to note that some tariffs, particularly those imposed under Section 301 (addressing unfair trade practices) and Section 232 (national security concerns), remain in place. These continuing tariffs mean that while there is some relief, the industry still faces challenges in terms of pricing and sourcing. This represents a 55% overall tariff rate furniture and home décor imports from China.

Looking Ahead:

While the 90-day pause offers a respite, it is a temporary measure. The underlying issues that led to the trade war, such as trade imbalances and intellectual property concerns, remain unresolved. The coming months will be crucial as both nations engage in further negotiations to seek a more permanent resolution. Zuo will continue to strategically move production from China as necessary to preserve best pricing for our customers when possible. For businesses in the furniture industry and beyond, staying informed and adaptable will be key to navigating the evolving trade landscape.

About Zuo Modern

Zuo Modern is a global brand offering a full range of stylish, affordable furniture for residential, office, and hospitality spaces. Known for its fast shipping, broad inventory, and design-forward collections, Zuo supports industry professionals with tools that make sourcing simple and dependable.

Email us at hello@zuomod.com with any questions.

Or give us a call at 510-877-4087 (Mon–Fri: 5:00 AM–5:00 PM PT)