Italian furniture and home industry leaders are concerned about a potential 30 percent duty on exports to the U.S. set by Trump, impacting jobs and growth. European businesses fear a tariff-for-tariff battle, which could be detrimental to all parties involved, including the U.S. consumer and European production system.

President of FederlegnoArredo, Claudio Feltrin, expressed dismay over Trump’s decision to introduce tariffs, warning of severe impacts on the European production system. The Italian wood-furniture sector faces challenges in defending its businesses in the U.S. market, with potential consequences for the entire European industry.

Carlo Urbinati, president of Foscarini and Assoluce, highlighted the severe impact of tariffs on the lighting sector, particularly with aluminum and steel tariffs already in place. Companies struggle to maintain market share in the U.S., facing significant price increases and economic uncertainty due to the weak dollar.

Confartigianato estimates a potential 17.8 billion euro impact on exports from Italian micro and small businesses trading with the U.S. Small businesses are a vital part of Italy’s economy, with the U.S. being a significant market. The declining dollar and tariffs pose challenges for Italian businesses.

Italy’s exports to China and the U.S. face challenges, with the U.S. market experiencing additional pressures like a declining dollar. Andrea Sasso, CEO of Dexelance, expressed concern over the combined effect of devaluation and tariffs, emphasizing the need for transparency in pricing to navigate market uncertainty.

In 2024, Italy’s wood furnishing sector reached a turnover of 51.7 billion euros, contributing significantly to the luxury furnishings industry. The U.S. is a key trade partner for Italy, with furniture accounting for 2.5 percent of all Italian goods exported to the U.S., highlighting the sector’s importance in trade relations.

Trump’s trade policies aim to boost domestic manufacturing, with investments like Japan’s Nippon Steel creating jobs in the U.S. However, tariffs have led to challenges for companies like the Howard Miller Company and Hekman in Michigan, impacting the furniture industry.

Michigan-based Howard Miller and Hekman faced closures due to tariffs, signaling challenges for the furniture industry. The impact of tariffs on businesses highlights the broader implications of trade policies on domestic manufacturing and supply chains. The housing market downturn has led to a decline in Howard Miller’s sales due to higher tariffs, impacting the cost of materials. Luca Fuso of Haworth Lifestyle’s Design Division warned that a 30 percent tariff could hurt sales to the U.S. and freeze purchases.

Furniture-maker Boffi|DePadova recently opened a flagship store in NYC to cater to American customers. CEO Roberto Gavazzi expressed concerns over potential tariffs and emphasized the importance of the U.S. market for Italian high-end companies like Giorgetti, which plans to expand in key cities.

Despite challenges, the EU is exploring options to negotiate with the U.S. to avoid tariffs. Trump demanded the EU drop its tariffs, while European Commission president Ursula von der Leyen warned of disruptions to transatlantic supply chains. Italy’s economy is projected to grow, but faces challenges from tariffs.

Italian businesses are eyeing growth opportunities in the Middle East, while new markets like Southeast Asia show promise. However, Luca Fuso cautioned that these regions may not fully offset losses from the U.S. market. The impact of tariffs on Italian design could affect global brand growth.

Read more at Yahoo Finance: Tariffs at 30 Percent Would Be a Tipping Point for European Furniture- and Lighting-makers