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There will likely not be a revival of these furniture cities, it's too late, says Jim Cramer
CNBC Televisionยท2025-08-26 23:36

Industry Analysis & National Security Concerns - The potential wiping out of domestic industries due to cheaper overseas manufacturing raises national security concerns, particularly regarding supply chain risks [1][2] - Tariffs are considered as a tool to prevent other countries from dumping steel or aluminum, and to encourage domestic production of essential goods like rare earth minerals and semiconductors [2][3] - The American furniture industry's decline is attributed to high manufacturing costs, leading manufacturers to move production overseas [4] Furniture Market Dynamics - Wayfair's furniture is cheap and good enough, with tariffs potentially only increasing prices without bringing manufacturing back [6] - High-quality furniture makers like William Sonoma and RH face difficulty finding skilled workers in the US [7] - Ethan Allen manufactures approximately 75% of its furniture in the US, potentially benefiting from tariffs [8] Economic & Policy Implications - The trade-off between domestic jobs and cheaper goods through globalization is acknowledged [4] - The revival of American furniture manufacturing is viewed skeptically, with doubts about its cost-effectiveness and impact on national security [7][8] - Nostalgia for past manufacturing glory is not a viable policy [9]