Politics

Trump Walks Back Tariff Plans Again

By Jake Beardslee · January 1, 2026

President Donald Trump has once again altered U.S. trade policy, signing an order that delays planned tariff increases on imported upholstered furniture, kitchen cabinets, and vanities for one year.

The decision, finalized on New Year’s Eve, postpones tariff hikes that were set to take effect on January 1, 2026. The move continues a pattern of frequent shifts in tariff policy that have added uncertainty for manufacturers, retailers, and consumers already facing elevated costs and ongoing supply chain pressures.

According to a White House fact sheet, Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to delay the increases. The document states: “Today, President Donald J. Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 (Act) to delay increases in tariffs for upholstered furniture, kitchen cabinets, and vanities for another year.”

The delay leaves in place the existing 25 percent tariff on upholstered furniture and postpones planned increases that would have raised tariffs to 30 percent for upholstered furniture and 50 percent for kitchen cabinets and vanities. Those increases will now take effect no earlier than January 2027.

The decision follows months of shifting tariff policies marked by rapid announcements, delays, and reversals. Trump has repeatedly defended the use of tariffs as a tool to address trade imbalances and protect domestic manufacturing, frequently framing them as a matter of national security.

At the same time, industry leaders and business groups have warned that the unpredictability of trade policy has made long-term planning difficult and increased costs across supply chains.

In its statement, the White House said, “The United States continues to engage in productive negotiations with trade partners to address trade reciprocity and national security concerns with respect to imports of wood products. The United States will therefore delay the increase in tariff rates for upholstered furniture, kitchen cabinets, and vanities that was set to take place on January 1, 2026, under the September 29, 2025, Proclamation for an additional year.”

The impact of shifting tariff policy has been felt across the manufacturing sector. Bob King, CEO of office furniture maker Humanscale, told Dezeen, “It’s very hard, as you can imagine, to make long-term decisions in this climate. Tariffs are changing rapidly every few weeks. Our people in operations have worked 60-hour weeks, sometimes more, just dealing with this. It’s been a very stressful year for all U.S. manufacturers.”

The delay provides temporary relief for importers and retailers but leaves uncertainty about future costs. Companies may respond by adjusting supply chains, increasing imports ahead of possible hikes, or accelerating domestic production.

The move also comes as Trump’s tariff authority faces legal scrutiny. The U.S. Supreme Court is reviewing challenges to the administration’s use of emergency powers to impose broad tariffs, following lower-court rulings questioning the scope of that authority.