US President Donald Trump has introduced a new proposal to impose tariffs on furniture imports. He said that the investigation will be completed in the coming 50 days and after that it will be decided how much a fee should be imposed on the furniture coming in America from other countries. Trump believes that this step will strengthen the American industry and bring production inside the country.

Why does Trump want to put tariff on furniture imports?

Trump in his statement especially mentioned states like North Carolina, South Carolina and Michigan. These states were once large centers in the furniture industry, but due to cheap labor and low production costs, most companies took their work abroad. Trump says that the new tariffs will be forced to produce companies again in America.

Trump’s announcement impact on the stock market

The impact of this announcement was directly seen in the US stock market. Shares of major furniture and home goods companies such as Wayfair, RH and Williams-Sonoma declined. While American manufacturing company like La-Z-Boy, which makes most of the furniture in America, increased its shares. Analysts believe that if the tariff is applied, foreign products will become expensive and domestic companies will get benefit.

Trump administration is investigating

The US Department of Commerce is currently investigating. This investigation is being done under Section 232 of the Trade Extension Act, 1962. This law allows the US government to impose tariffs on such products which are considered necessary for national security. However, it is not clear whether this tariff will be in addition to the current duty or will replace it.

Furniture industry used to provide employment to 12 lakh people in US

There was a time when America’s furniture industry was very strong. In 1979, about 1.2 million people used to work in this industry. By 2023, this number has come down to just 3.4 lakhs. The main reason for this decline is considered cheap production abroad and large -scale outsourcing. Trump says that the new tariff will not only promote the American industry but will also return employment for thousands of people.

Will Trump’s announcement be affected by India?

The proposal to impose tariffs on furniture imports is part of the widespread strategy of the Trump administration. The government is already considering putting tariffs on other products as well. These include copper, semiconductor and pharmaceuticals. The goal of this strategy is to promote domestic production, reduce foreign dependence and reinforce industry and employment in the US. Let us know that this announcement of Trump is also going to affect India because India also exports a large amount of furniture in America.