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Trump threatens fresh tariffs related to furniture, movies
BusinessLine· 2025-09-29 15:23
Group 1 - President Trump announced plans to impose substantial tariffs on countries that do not manufacture furniture in the United States, aiming to revitalize the domestic furniture industry, particularly in North Carolina [1][2] - Trump also threatened a 100% tariff on movies produced outside the United States, claiming that the U.S. film industry has been adversely affected by foreign competition [2][4] - The announcement has led to a decline in Netflix's stock by 1.3% in premarket trading, reflecting investor concerns over the uncertainty surrounding the proposed tariffs [3] Group 2 - The proposed tariffs on foreign films and furniture have raised questions about their implementation and valuation for duty-collection, given the global nature of film production and the complexities involved [5][6] - Trump has already enacted a 30% tariff on upholstered furniture and a 50% import tax on kitchen cabinets and bathroom vanities, effective from the upcoming Wednesday [6]
The Trump Market: Where Chaos Meets a Collective Shrug
Stock Market News· 2025-09-28 06:00
Tariff Announcements and Market Reactions - A 100% tariff on branded or patented pharmaceutical products is set to take effect on October 1, 2025, aimed at boosting domestic manufacturing and addressing a "feud with Tylenol" [3] - Major pharmaceutical companies like Merck, Eli Lilly, and Johnson & Johnson saw minimal stock gains, as they had already announced U.S. expansion plans [4] - European pharmaceutical firms experienced a decline in stock prices, with shares of Lonza, Novartis, and Roche dropping around 1.2%, while Japanese firm Sumitomo Pharma fell 3.5% [5] Furniture and Truck Tariffs - Upholstered furniture will face a 30% tariff, while kitchen cabinets and bathroom vanities will incur a 50% tariff, effective October 1, 2025, justified by "national security" [6] - Import-reliant furniture retailers like RH and Wayfair saw significant stock declines, with RH falling 4.16% and Wayfair nearly 3% [7] - Domestic manufacturers such as La-Z-Boy benefited from the tariffs, with La-Z-Boy's stock rising 8% [8] - A 25% import tax on heavy trucks positively impacted American truck manufacturer Paccar, whose stock surged 5.16% [9] Broader Market Trends - Despite the tariff announcements, major U.S. indices finished higher on September 27, 2025, with the Dow Jones up 0.65%, S&P 500 up 0.59%, and Nasdaq up 0.44% [12] - Analysts attributed this rally to relief over inflation data and a growing tendency for the market to overlook tariffs [13] - The overall market's ability to adapt to unpredictable trade policy announcements reflects a blend of selective attention and resilience [14]
Presidnet Trump announces new tariffs on pharma, big trucks, furniture, kitchen supplies
Youtube· 2025-09-26 16:38
Tariffs Announcement - The US will impose a 100% tariff on branded or patented pharmaceutical products starting October 1st, with exemptions for companies building drug manufacturing plants in the US or those with ongoing construction projects [1][2] - A 25% tariff on imported heavy trucks will also take effect on October 1st [2] - A 50% tariff will be applied to kitchen cabinets, bathroom vanities, and associated products, while a 30% tariff will be imposed on upholstered furniture, both starting on October 1st [3] National Security Justification - The president cited national security as a reason for the new tariffs on kitchen supplies and furniture, indicating a broader interpretation of national security that includes economic productive capacity [3][17] - Section 232 investigations into imports of robotics, industrial machinery, and medical devices may lead to additional tariffs, suggesting a strategic approach to tariff implementation [3][16] Impact on Agriculture - The trade war has negatively affected American farmers, particularly in soybean exports to China, prompting the president to develop a mechanism to transfer tariff revenues to support farmers [4] Trade Agreements and Exemptions - Questions arise regarding how these new tariffs will interact with existing trade agreements with countries like Japan, Korea, and Europe, particularly for products already covered under those deals [5][6] - The potential for exemptions from tariffs has raised concerns about crony capitalism and favoritism towards large businesses, as highlighted by industry leaders [8][9] Future Political Landscape - Speculation exists that even if a Democratic administration were to take power, the current tariffs may not be fully rolled back due to the political implications of harming American workers [20][21] - The ongoing use of tariffs as a tool for political leverage may complicate future trade negotiations and exemptions [22]
SPX Hovers Near Key Support, Pharmaceutical & Truck Tariffs Add Pressure
Youtube· 2025-09-26 13:01
Market Overview - The S&P 500 is attempting to hold the 6,600 level, which is significant as it is close to the 20-day moving average, a key support area since the tariff announcements [2][4] - Recent market activity indicates a rotation towards more defensive positioning, with profit-taking observed [4] Tariff Implications - The U.S. government is set to implement 100% tariffs on all branded prescription drugs, excluding generics, which may benefit companies like Eli Lilly and JNJ that are expanding manufacturing in the U.S. [6][8] - The pharmaceutical industry imported approximately $213 billion worth of prescription drugs in 2024, indicating a substantial impact from the new tariffs [9][10] - If generics are included in future tariff considerations, it could negatively affect both consumers and manufacturers, as generics are a significant volume driver for profitability [9] Industry-Specific Impacts - The furniture sector is facing 50% tariffs on kitchen cabinets and bathroom vanities, and 30% tariffs on upholstered furniture, primarily affecting imports from China and Vietnam [12][13] - Heavy-duty trucks are subject to 45% tariffs, which may not have an immediate impact due to a decline in demand over the past few years [14][15] TikTok Deal Developments - The Trump administration has approved a deal involving TikTok, with the entity valued at around $14 billion, significantly lower than market expectations [17][18] - The deal includes Oracle and aims to secure U.S. data and algorithms, which is seen as a significant achievement for the administration [16][18]
Trump says U.S. will impose new tariffs on heavy trucks, drugs and kitchen cabinets
MSNBC· 2025-09-26 10:00
Trade & Tariffs - US to impose new tariffs on imported heavy duty trucks, branded medications, kitchen cabinets, and upholstered furniture, effective October 1st [1] - US Chamber of Commerce disputes national security concerns, noting top import sources are US allies [2] Market & Economy - Major indexes ended in the red despite stronger than expected economic data [3] - Weekly jobless claims came in less than expected, at 218,000 versus 235,000 expected [3] - Markets are focused on fresh inflation data, with the personal consumption expenditures price index due out [4] - Markets are pricing in two quarter point rate cuts this year, dependent on inflation data [4] Legal & Regulatory - Amazon to pay $2.5 billion in settlement with the Federal Trade Commission (FTC) over deceptive practices related to Prime services [6] - $1 billion of the settlement will go to the FTC, and $1.5 billion is expected to be paid out to approximately 35 million consumers [7]
Trump's New Furniture Tariffs Sends RH Stock Down After Hours: What You Should Know - RH (NYSE:RH)
Benzinga· 2025-09-26 06:39
Core Insights - RH Inc. shares dropped 3.39% to $204.14 in after-hours trading following President Trump's tariff announcement targeting home furnishings [1] - The U.S. will impose a 30% tariff on upholstered furniture and a 50% tariff on bathroom vanities, attributed to a "massive influx" of foreign products [2] - All tariff measures will take effect on October 1, including a 25% tariff on heavy-duty trucks and a 50% tariff on kitchen cabinets [3] Stock Performance - RH closed at $211.30 on Thursday, down 0.62% for the regular session, and has fallen 46.31% year-to-date with a 52-week range of $123.03-$457.26 [3] - The company's market capitalization is $3.96 billion with a price to earnings ratio of 39.30 [3] - RH reached a peak of $454.52 on January 2, showing a 53.51% decline from that peak [4] Market Sentiment - Benzinga's Edge Stock Rankings indicate that RH is experiencing medium-term upward movement despite recent declines [4]
Is It Too Optimistic of RH to Maintain Margin Outlook Despite Tariffs?
ZACKS· 2025-07-16 14:16
Core Insights - The ambiguity of the new U.S. tariff regime is impacting global markets, including RH, a luxury home furnishing retailer, which is closely tied to housing market trends facing challenges in affordability [2][3] Business Strategy - RH is actively investing in diversified business plans to enhance revenue visibility and ensure long-term margin expansion [3] - The company plans to reduce its sourcing from China from 16% in Q1 FY25 to 2% by Q4 FY25, with projections of 52% of upholstered furniture produced in the U.S. and 21% in Italy by the end of 2025 [3][7] - To mitigate risks from the domestic market, RH is focusing on international markets, particularly Europe, with plans for new gallery openings in Paris, London, and Milan [4] Financial Performance - In Q1 FY25, RH's adjusted operating margin increased by 50 basis points to 7%, and adjusted EBITDA margin rose by 80 basis points to 13.1% [5] - The company maintains its fiscal 2025 adjusted operating margin guidance of 14% to 15% and adjusted EBITDA margin guidance of 20% to 21% [5][7] Stock Performance - RH's stock has gained 16.4% over the past three months, outperforming the Hoya Capital Housing ETF (HOMZ) [6] - The stock is currently trading at a forward price-to-sales (P/S) ratio of 0.95, which is lower than Ethan Allen's 1.19 and higher than Arhaus's 0.83, indicating a potentially attractive valuation for investors [10] Earnings Estimates - Earnings estimates for RH for fiscal 2025 and 2026 have been revised downward to $10.76 and $14.61 per share, respectively, but still reflect year-over-year growth of 99.6% and 35.8% [11][12]
Can RH Maintain Its 20-21% EBITDA Margin Outlook for Fiscal 2025?
ZACKS· 2025-06-30 13:46
Core Insights - RH is implementing diverse in-house strategies to ensure margin expansion amid high mortgage rates, tariff-related risks, and inflationary pressures [1] - The company is focusing on global expansion, a customer-friendly membership approach, and supply-chain optimization to increase revenue visibility [1] Group 1: Financial Performance - In Q1 2025, RH's adjusted EBITDA margin expanded by 80 basis points year-over-year to 13.1% [1][8] - The company expects its adjusted EBITDA margin for FY25 to be between 20% and 21%, up from 16.9% reported last year [4][8] - Earnings estimates for fiscal 2025 have trended upward to $10.87 per share, indicating robust 101.7% year-over-year growth [11] Group 2: Market Expansion - Demand in Europe has grown by 60% across RH Munich and RH Dusseldorf, with continued growth in RH Brussels and RH Madrid [2] - RH plans to open new locations in Paris in September 2025, and two more in London and Milan in 2026 [2] Group 3: Supply Chain Strategy - RH is shifting its sourcing out of China, expecting receipts to reduce from 16% in Q1 2025 to 2% by Q4 2025 [3][8] - By the end of 2025, RH projects that 52% of its upholstered furniture will be produced in the U.S. and 21% in Italy [3] Group 4: Competitive Positioning - RH shares have gained 13.9% in the past month, outperforming the Hoya Capital Housing ETF (HOMZ) [5] - In comparison, shares of competitors Williams-Sonoma and Arhaus have increased by 3.8% and 2.2%, respectively [6] Group 5: Valuation Metrics - RH stock is currently trading at a forward 12-month P/E ratio of 15.3X, which is lower than Williams-Sonoma's 18.83X and Arhaus's 19.66X [9] - The discounted valuation of RH stock compared to other market players presents a promising opportunity for investors [9]