The Trump administration has reached a trade deal with Vietnam, which will lower proposed tariff levels on goods imported from the country to 20%, a significant reduction from the 46% duty announced in April. This agreement is expected to provide relief to U.S. furniture retailers.
Wayfair, which has greater than 10% sourcing exposure to Vietnam, is poised to benefit from this revised tariff structure. Mizuho analysts noted that the new deal should make tariffs manageable for the company, mitigating potential cost increases.
The initial threat of 46% tariffs had put pressure on furniture industry stocks due to fears of significantly higher costs, as many companies had diversified their sourcing to Vietnam. This resolution positively impacts Wayfair's supply chain and profitability outlook.
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