More tariff disruption on the horizon; here’s what you need to know | JINHANFAIR trade news

2026.07.14

The second half of the year may well be shaped by what happens in Washington over the next three weeks. As a result, furniture retailers building fall and holiday assortments need to plan against three distinct cost scenarios.

That is because, as I write this, no one can tell you which one will emerge on July 25. Here’s why.

The 10% global tariff imposed in February under Section 122 of the Trade Act reaches its 150-day statutory limit on or about July 24. For those following along at home, this is the administration’s replacement for the IEEPA tariffs struck down by the Supreme Court. Now Congress must act to extend them, replace them or let them lapse. However, there appears to be no consensus on which path Congress will take.

At the same time, the U.S. Trade Representative (USTR) has proposed new Section 301 dutiesof 10% to 12.5% covering roughly 60 economies. Public hearings began July 7, and the timing is not coincidental.

The proposed rates would provide continuity if Section 122 expires. Separate Section 301 investigations targeting Vietnam, Indonesia and Thailand — three of the furniture industry’s most important sourcing countries — face a July 20 completion deadline. Add to that a third round of United States-Mexico-Canada renegotiations, which are also slated for July 20, and nearly every major furniture sourcing country has a question mark over it this month.

So, what can retailers do to protect themselves? Three things.

First, model your landed costs under all three outcomes.

1.tariffs lapse and costs drop roughly 10 points

2.Congress extends the status quo; or

3.Section 301 duties replace Section 122 at similar or higher rates.

The most likely outcome, based on USTR’s actions thus far, is continuity.  Plan your fall pricing and promotional activity accordingly and treat any relief as upside rather than a baseline.

Second, pay close attention, and track your receipt timing. Under current guidance, entries arriving on or after July 25 may not owe the Section 122 surcharge if it lapses. That does not justify delaying product you need for Labor Day and fall floor sets, but for discretionary container bookings, the calendar matters more than it normally does.

Third, collect what you are owed. Importers that paid IEEPA duties between April 2025 and February 2026 can now reclaim them through Custom and Border Protection’s (CBP) Consolidated Administration and Processing of Entries (CAPE) process in the ACE portal.

Treasury began issuing refunds in May. Those windows close as entries liquidate, and a protest must be filed within 180 days of liquidation to preserve a claim. For direct importers, that means real cash for the second half, but only if the paperwork gets filed.

It’s common in times like this to wait for clarity before committing. The calendar makes that an untenable strategy this time around. Fall market appointments, holiday orders and promotional plans can’t wait for Congress. The furniture retailers best-positioned for the second half will be those who priced for uncertainty, protected their receipt timing and recovered every refund dollar available.

Will that be you?

This article was assisted by an AI engine and reviewed, fact-checked and edited by our editorial staff.