Jeff Seaman, CEO Rooms To Go, Seffner, Fla. It hasn’t really affected it. You always play hypotheticals, but … it’s really no change as of now. I think a lot of Chinese manufacturers are looking to other countries, so they’re certainly thinking about it. With 10% (tariffs) the vendors are really helping out. At 25%, things will move out of China, and it will take a year before it settles down. That would be massive; that would change everything. It would disrupt the supply chain. There’s not enough production outside of China. There would be shortages of product possibly, or just the prices would go up for awhile. But it’s hard to know (what would happen). We’ve always just tried to be on the ball and take the events as they come. I don’t know (how we would address it until the tariffs play out). … Obviously if something is still imported from China, the price would be higher. I think there would be more domestic purchasing, but even there, the supply chains are pretty stretched Kyle Johansen, merchandise manager HOM Furniture, Coon Rapids, Minn. It has definitely impacted our thought process going forward as to where we need to source from. Some products will definitely continue to be sourced from China. A 10% tariff is not going to affect accessories or art, for instance, so it’s still going to be China. But (for bigger tickets), we’ll have to decide if China still makes sense. It’s less of a concern now with the 10% (announcement). We’ve already received letters from vendors, and it doesn’t sound like they will be passing on the full 10% at the end of the day. A 25% tariff would be a game changer and immediately impact all product decisions out of China until the tariffs are revoked. But it’s too early to know. This Sunday, Trump could be on TV saying, “We’re not going to have tariffs; we’re having a summit with China instead.” We’re definitely not making wholesale changes to our business until we know what the final outcome is going to be.
The article RETAILERS: How has the tariff situation impacted your global sourcing strategy? appeared first on Furniture Today.Jump to article