President Trump announced a 90-day pause on reciprocal tariffs for all trading partners, with the exception of China. This decision is expected to impact furniture retailers, including MillerKnoll, which had previously cited tariffs as a factor influencing its financial outlook.
Under the new policy, reciprocal tariffs will be lowered to 10% across the board for most trading partners. China, however, will face a 125% tariff. This move could reduce material costs for companies that had diversified their supply chains away from China to other regions.
The pause on tariffs addresses a significant headwind for the industry, potentially improving gross margins for companies like MillerKnoll. The company had previously estimated incremental tariff-related costs impacting its earnings, and this development could mitigate those pressures.
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