The suggestion last week that the Trump administration might seek a 20% tariff on Mexican imports lasted only hours before an administration spokesman began walking it back. Instead, the President’s press secretary indicated a tariff was only one potential solution and intimated that 20% could actually be less, maybe even 5%.
Despite that, there is increasing speculation within the industry that some form of import tax, tariff or other price adjustment is a real likelihood in the coming months. And not just on Mexico.
For example, one such adjustment being bandied about — and admittedly there is little publicly available information at this point — is a 25% tariff on imports out of Asia. Whether this is simply the furniture industry rumor mill running on overdrive or one of those not infrequent cases where reality and rumor intersect remains to be seen.
However, given President Trump’s active first week attempting to deliver on campaign promises, it is not unreasonable to believe he will attempt to follow through on his promise to bring manufacturing jobs back to the U.S. and rebalance the trade scales to strengthen American companies.