In a move that has stunned global markets and sent shockwaves through the furniture and e-commerce industries, the Trump administration has not only confirmed its new round of sweeping tariffs but escalated them with unprecedented intensity. With punitive tariffs now in full effect for Chinese imports and a 90-day countdown in place for the European Union and other nations, businesses across multiple sectors are scrambling to assess the fallout.
China takes the first hit: discount e-tailers targeted
According to a recent report from eHandel SE, the U.S. has drastically ramped up tariffs on low-value packages from China and Hong Kong, a direct strike at ultra-popular e-commerce giants like Temu and Shein. Previously exempt from high duties under the $800 de minimis threshold, these parcels will now be subject to tariffs tripling their former rates, 90% of the package's value or a flat $75 fee per shipment, up from 30% or $25.
This bold escalation is part of Trump's broader effort to close what he calls the "cheap imports loophole." As eHandel notes, the move is likely to cause significant logistical challenges for carriers like USPS and DHL, with experts warning of delays and increased friction at the border.
'This effectively prices budget Chinese goods out of the U.S. market,' said one trade analyst. 'And it's not just about protecting domestic industry — it's a clear signal in the ongoing trade war.'
European manufacturers: "Punitive, not productive"
Although EU member states have been granted a 90-day reprieve, companies are already reacting with concern. As möbelfertigung reports, many in the European furniture and supply industries are bracing for impact. The 20% tariffs on EU products, particularly affecting sectors like kitchen furniture and hardware, are being widely criticised as harmful to both sides of the Atlantic.
Jan Kurth, Managing Director of the German Furniture Industry Associations, commented: 'This is extremely disappointing, it makes our products more expensive for American consumers and injects uncertainty into transatlantic trade. It's likely we'll see diversion of Chinese and Vietnamese goods into Europe, adding further pressure on our market.'
Jana Schönfeld of the Hettich Group added that inconsistent trade policies are straining consumer sentiment and business stability: 'Volatile decisions are hurting global customer confidence. We need sensible trade agreements and more stability to secure jobs and production.'
Industry leaders warn of global repercussions
Prominent industry voices echoed the sentiment that the tariffs could backfire economically. Bertram Kawlath, President of the VDMA, stressed:
'Punitive tariffs damage both producers and consumers. They isolate rather than resolve disputes. The EU will likely retaliate, pushing us further into a cycle of escalation.'
Even companies with a solid U.S. presence are affected.
Philipp Blum, Managing Director of Blum Group, said: 'Despite local production, we rely on transatlantic shipping of materials. These tariffs will drive up U.S. hardware prices — and ultimately, it's the consumer who pays.'
What's next?
As the countdown continues for other trading partners, industry observers are watching closely to see whether retaliatory tariffs, rerouted trade flows, and market turbulence will intensify. The 90-day suspension for non-Chinese countries may offer a window for negotiation — but given current rhetoric, most insiders are not optimistic.
Amid the widespread concern, the global business community is left with one clear message: trade wars may start with policy, but they end at the checkout counter.
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