- President Donald Trump says a “tariff investigation” on furniture imports is underway.
- “Companies will tell you that you can’t just invent a workforce that knows how to make upholstery. That ship’s sailed,” Cramer says.
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CNBC host Jim Cramer blasted President Donald Trump's proposed tariffs on imported furniture, arguing that the policy is poorly timed and detached from the realities of the modern marketplace.
- WSM stock slipped after Q2 earnings. See the chart here.
On Tuesday evening, Cramer dismissed the idea that tariffs on sofas, chairs and other household items would somehow revive a dormant U.S. furniture manufacturing industry.
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"Some of these industries aren't probably going to come back," Cramer said.
"Companies will tell you that you can't just invent a workforce that knows how to make upholstery. That ship's sailed," he added.
Last week, Trump announced on Truth Social that a "tariff investigation" on furniture imports was underway and would be completed within 50 days.
"Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined. This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union," Trump wrote.
Shares of home furnishing companies including RH RH, Williams-Sonoma, Inc. WSM and Wayfair, Inc. W plunged following Trump's social media post.
Cramer argued that if tariffs are imposed, it is unrealistic to expect furniture manufacturing jobs to return, noting that the U.S. has relied on cheaper import supply chains for a long time.
He described this as "the bargain of globalization," where the country traded away domestic jobs in return for lower-cost consumer goods manufactured in other countries.
"At the end of the day, I'm skeptical that we can bring back the American furniture industry as we remember it, and even if we could…would it be worth the cost?" Cramer asked.
"I don't know. It's not, like, a national security need for tables and chairs."
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