When President Trump marks his first 100 days in office, the facility facility industry, like many other industries, observes exactly the Ripple effects of comprehensive political changes. From the upgrades of the Federal Authority to aggressive commercial agencies and regulatory rollbacks, the early steps of Trump are new to the economic landscape for retailers and manufacturers. While some changes have not yet come about fully, others already create uncertainty and potential opportunities for our industry.
Here you will find a breakdown of the most important developments and what you could mean for company opportunities:
Federal Financing and Wing Association
One of the most ambitious structural changes in Washington was the creation of the Department of Government Efficiency (Doge). While his name sounds harmless, the main task of Doge is to consolidate agencies, to reduce overhead costs and to eliminate departments that are as redundant or exaggerated.
The Consumer Financial Protection Bureau (CFPB) was one of the most remarkable victims. While CFPB was not a central player in the household furniture room, its closure symbolizes a broader reduction in Federal Consumer Protection. Retailers who offer financing in business or work with third-party providers may find the regulatory environment more smoothly, with fewer compliance guidelines, possibly a higher risk and less guidance.
These changes to the agency can disrupt federal programs, staff training and initiatives for economic development, which some regional manufacturers, especially in rural municipalities, rely on.
Trade policy: new rules, new risks
Perhaps the most direct and potentially disruptive political shift took place in the form of trade reform. The government of President Trump has introduced a mutual tariff policy in which the tariffs imposed by other nations are coordinated in benefits in kind. The administration has also announced a 10% global import tariff for many categories of goods, including furniture. This global rate is currently in force until July 8, 2025. In the meantime, HFA continues to monitor all developments related to bilateral trade agreements with the USA and our trading partners.
The most significant tensions with China have escalated for our sector, which led to an additional 145% tariff on furniture imports from the country. In view of the fact that China is a dominant supplier for many US furniture manufacturers and retailers, this campaign could make the procurement strategies new almost overnight.
Retailers can be exposed to increased prices for the bestseller product lines, which leads to closer margins or the need to increase consumer prices. Domestic manufacturers may see the possibility of regaining the market share, but capacity, raw material costs and agility of the supply chain will be critical factors. For importers, the sudden cost increases could lead to large inventory and price challenges at peak times.
Tax reform in motion
In coordination with the leaders of the Republican Congress, the Trump government also has its sights on the broad tax reform. While the complete details are still being negotiated, the general framework indicates the lowered corporation tax rates and the potential facilitation of thoroughfare such as LLCs and S-corporation structures that are common for independent retailers and family manufacturers. President Trump has repeatedly undertaken to deliver the “greatest tax cut in American history”.
If the reform is adopted this summer, it could offer many in the home furnishings a financial buoyancy and free capital for expansion, hiring or reinvestment in business. However, there is uncertainty about which deductions or business expenses can be eliminated for compensation for reduction in installments. Retailers should keep in touch with their tax advisors to understand how the final legislation could affect their end result.
Deregulation on overdrive
One of President Trump's Hallmark Executive Orders stipulates a deregulation rate of 10 to 1: 10 existing elements must be removed for each new federal regulation presented.
The details of the enforcement remain vague, but the effects could be significant for sectors caused by the federal government compliance with the federal government. Environmental, labor and occupational safety rules can be re-evaluated, which reduces overhead costs or the complexity of the compliance can be removed. For example, manufacturers can see loosened EPA guidelines or OSHA regulations that currently affect furnishing companies or employee classifications.
However, this aggressive approach also creates uncertainty. Many companies rely on stable regulatory framework. A sudden vacuum or an inconsistent enforcement could be risks, especially for companies that work in several countries or jurisdiction.
Conclusion: a transition period
President Trump's first 100 days have initiated a time faster transformation. This moment offers a mixed pocket for the home management industry: an opportunity for domestic growth, potential tax savings and relief from regulatory stress, but also considerable volatility in the areas of trade, disorders of the supply chain and uncertain support of the federal government.
Retailers and manufacturers have to remain agile. Now the time is too:
- Refill the procurement strategies and supplier relationships.
- Monitor the developments of the tax reform closely.
- Prepare for a possible price volatility and shift in consumer demand.
- Lawyers for industry interests while the federal government itself is being redesigned.
In the coming months, it will be determined whether these early directive changes solidify in permanent advantages or require a costly adaptation.
The HFA team of the state action relationships of the HFA and other industrial interest groups will fly to Washington, DC, to visit representatives of the congress, language problems and for urgent measures that promote stability and economic growth in home opportunities for the establishment of home opportunities.