Ethan Allen CEO on Trump's furniture tariffs: It's good if it helps us bring manufacturing back

Core Viewpoint - The recent announcement of substantial tariffs on furniture imports aims to strengthen U.S. manufacturing and bring production back to the country, with specific tariffs of 30% on upholstered furniture and 50% on kitchen cabinets and bathroom vanities [1]. Company Overview - Ethan Allen, a major player in the furniture industry, has a market capitalization of $736 million [1]. - The company has 75% of its manufacturing based in North America, with production facilities in Mexico, Honduras, Vermont, and North Carolina [3][5]. Manufacturing and Workforce - The furniture industry faces challenges in bringing manufacturing back to the U.S. due to workforce shortages and the need for significant investment [8]. - Over the past decade, Ethan Allen has reduced its workforce by 30% while increasing business, indicating a shift towards more efficient operations [8]. Cost and Competitive Advantage - Manufacturing costs in the U.S. are approximately 25% to 30% higher than in countries like China [11]. - Ethan Allen maintains competitive pricing through customization, with 75% to 80% of its products made in North America being custom orders, allowing for quicker delivery times of four to six weeks [12][13]. Market Environment - The current market environment has seen a 30% decline in store traffic over the last ten months, impacting sales [14].