Vietnam furniture exporters bet US shoppers will pay tariffs

Trayton Group signed a deal to relocate most of its furniture production to Vietnam from China the day after Donald Trump was reelected as US President. New US tariffs would not change the strategy, its head told Reuters.

- FRANCESCO GUARASCIO

The mid-sized manufacturer, which declined to disclose its revenues, ships 70% of its furniture to the US, where its sofas and armchairs are sold either under top retailers’ names or with its own Simon Li brand in major chains, including Costco.

Trump signed on Monday a document imposing 25% tariffs on wooden furniture from Oct 14, which could rise next year to 50% for vanities and kitchen cabinets and to 30% for upholstery. He had earlier said the new duties would take effect today, Oct 1.

Trayton is exposed to the levy on upholstery, said the company’s founder and CEO Simon Lichtenberg, noting that may narrow margins but was likely to be largely absorbed by US consumers who will pay more.