Tariffs Drive Consolidation, Vertical Integration Across U.S. Retail, Manufacturing

U.S. President Donald Trump's tariffs on furniture imports have intensified challenges for the industry, leading to closures of historic American companies such as The Howard Miller Company and Hekman. Industry leaders like RH's CEO Gary Friedman predict a wave of bankruptcies and consolidation due to rising costs from these tariffs, which will increasingly impact consumers and retailers through 2025. In response to tariff pressures, Home Depot has pursued vertical integration by acquiring its supplier GMS for $5.5 billion, aiming to control costs, logistics, and supply reliability especially in its contractor-focused "Pro" segment, which is critical for its growth. This move is part of a broader retail trend where companies like Costco and Walmart are buying upstream supply chain assets to mitigate cost volatility and external shocks. Meanwhile, evolving global customs and tax policies emphasize the importance of transparent pricing and compliance to improve cross-border commerce efficiency. In addition, supply chain experts in other sectors, such as toys, emphasize the need for diversification beyond China and the importance of ethical, resilient sourcing to navigate rising costs and tariff exposure.