Trump tariffs and Western furniture: Which countries and industries face the biggest blow?

The U.S. Supreme Court is about to announce a groundbreaking decision soon. The case concerns the legality of tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA). If the judges find these tariffs unlawful, Washington may be forced to refund importers nearly $150 billion in customs duties. Among the companies that have already filed lawsuits against the government’s decisions are giants like Costco, Walmart, Amazon, Target, and Apple, as well as furniture manufacturers and Ray-Ban producer EssilorLuxottica.

Supreme Court to Decide on the Legality of Tariffs Under IEEPA

The imposed tariffs are divided into three main categories. The first group targets imports related to fentanyl from China, Mexico, and Canada—focused on public safety. The second includes broader “reciprocal” tariffs aimed at reducing the U.S. trade deficit. The third category consists of punitive tariffs mainly imposed for political reasons, not directly related to trade.

Key sectors—such as pharmaceuticals, energy, agriculture, aviation, and financial services—have largely been exempted from the new rates. This decision reflects their strategic importance to the economy, deep integration with global supply chains, and potential public health risks. Meanwhile, manufacturing industries, including Western furniture producers involved in interior furnishings, face direct threats.

Which Countries Will Suffer the Biggest Losses from Tariffs?

China and Hong Kong top the list of affected countries. Consumer electronics, machinery, medical devices, and household goods from this region—including Western furniture imported through supply chains—are subject to a 10% tariff. Companies like Lenovo, Costco, and Walmart will see significant increases in import costs.

Taiwan faces an even worse situation. Semiconductors and integrated circuit manufacturing—crucial to global technology—are subject to 20% tariffs. Foxconn and TSMC are bracing for disruptions in their supply chains.

Mexico and Canada have a more complicated situation. Cars and spare parts from these countries may be exempt from tariffs if they meet USMCA (United States-Mexico-Canada Agreement) requirements. However, goods that do not comply will face a 25% tariff. Volkswagen, General Motors, and Ford will need to recalculate costs repeatedly.

The European Union and the United Kingdom have negotiated changes. Most Western-made cars, machinery, and furniture from these regions will face a 15% rate for most EU goods and 10-25% for UK products, depending on the category. Still, even these reduced rates will impact exporters like Stellantis and Sanofi.

Western Industries in the Crosshairs: From Electronics to Furniture

The Western furniture sector—manufacturers from Europe and Southeast Asia—is facing significant burdens. Tariffs of 19-20% on Southeast Asian countries will directly hit brands like Nike, Toyota, and Western furniture producers. Companies operating under the “China-plus-one” strategy—such as Vietnam, Thailand, and Indonesia—who moved production out of China to avoid tariffs are now encountering new obstacles.

Digital products, household items, auto parts, and Western furniture transported through these countries now face tariffs of 19-20%. Hewlett Packard, VF Corp, and Lululemon, which invested in diversifying their supply chains, are becoming primary victims of political shifts.

India and Brazil: Special Punitive Tariffs

India faces particularly harsh treatment. Pharmaceuticals, refined fuels, auto components, and some furniture categories could face tariffs up to 50% on key exports. Sun Pharma, Dr. Reddy’s, and companies linked to Reliance will have to contend with dramatic increases in competitiveness costs.

Brazil, on the other hand, faces punitive tariffs. Steel, aluminum, and agricultural products will be subject to a 40% tariff, plus an additional 10% “reciprocal” tariff. Embraer, ArcelorMittal, and Gerdau are expected to experience significant disruptions.

Pakistan, Bangladesh, and Sri Lanka are also affected. Textiles, apparel, and sporting goods—categories in which Western brands like H&M, Gap, and Adidas specialize—are subject to tariffs of 19-20%. For the textile and furniture industries, this means recurring cost increases.

Negotiations and the Future

The U.S. has already reached preliminary agreements with the European Union, the United Kingdom, Japan, South Korea, Vietnam, and Switzerland, reducing tariffs for them in exchange for increased market access and investment commitments. This shows Washington is willing to negotiate—but only with selected partners.

For Western furniture producers and other sectors, uncertainty remains. The Supreme Court’s decision on the legality of tariffs under IEEPA will be a pivotal moment. If tariffs are declared invalid, the potential refund of $150 billion could revive trade and reshape the market landscape. However, if the judges uphold their legality, Western furniture and many other goods will have to compete under significantly higher tariff barriers.

Report by: Pooja Menon and Puyaan Singh in Bengaluru; Editorial: Alan Barona