Amid escalating tariffs in the United States and intensified competition in foreign markets, the “Furniture Capital” of China, Foshan in Guangdong Province, is facing a survival crisis and losing its former glory.
Due to the impact of the Trump administration’s increased tariffs, China’s furniture industry saw a 6.8% decline in exports in 2025. Foshan, located in the Pearl River Delta, has been hit hard. According to local government data, due to the contraction of the manufacturing industry, Foshan’s economic growth in 2025 was only 0.2%.
Compared to high-tech products, furniture and other low-end, low-profit goods are more easily exported from China. The tariffs and intensified foreign competition have severely impacted the export economic model of cities like Foshan in China.
Foshan’s furniture factories have long relied on the steady stream of enormous orders from U.S. retail giants like Walmart and Home Depot. However, since the Trump administration first imposed tariffs on Chinese goods during his first term, Americans have started to reduce purchases of furniture from China and turned more to countries like Vietnam and Mexico.
The Wall Street Journal reported on Sunday, May 10th, that some Foshan furniture owners have shifted domestic production to Southeast Asia to avoid U.S. tariffs. Others are striving to explore new customers in other regions to offset the losses in the American market. Some manufacturers are attempting a transformation, shifting from the low-end market to the high-end market, focusing on high-end furniture and custom designs.
Ken Hu, a business consultant specializing in home goods and furniture sales in Foshan, expressed that the past year has been filled with challenges.
Reportedly, the scale and speed of Trump’s tariff increases have caught Hu and other Chinese business people off guard. Overnight, Hu’s U.S. sales decreased by about 15%, accounting for half of his total revenue.
To cut costs, Hu moved to a small office within one of Foshan’s largest furniture exhibition centers, Easyhome. He has had to rely on expanding business in other regions to sustain income.
He provides export strategy consultations for local manufacturers and acts as an intermediary in overseas sales, including selling products on platforms like Wayfair and Amazon.
Many Chinese furniture manufacturers are striving to adapt to these changes. In 2025, China’s exports of furniture and related products to the U.S. dropped by 18%, and this ratio is still declining in 2026.
Hu noted that the once bustling Easyhome now looks like a ghost town, with many empty offices and shops in its eight-story building.
In 2025, Trump returned to the White House and imposed new tariffs on all Chinese goods. Currently, some Chinese furniture tariffs remain at 25% even after adjustments.
Adding to the woes, challenges continue to mount. The Iran war that started at the end of February has dampened demand in the Middle East. The Middle East was a rapid growth export source for Chinese furniture. This conflict also threatens the global economy and could lead to a decrease in orders from around the world.
Julei, a bed frame factory in Foshan operating for 26 years, lost Walmart as a major customer during Trump’s first term due to tariffs. Subsequently, they were hit with a 50% increase in steel and aluminum tariffs during Trump’s second term, completely destroying the company’s remaining sales in the U.S.
Just when Julei had expanded to new customers in Europe and the Middle East, the Iran war cast a shadow over their prospects. According to salesperson Nicole Luk, the potential buyers at the furniture expo held in Guangzhou in March were fewer due to the war’s impact.
“The industry landscape is changing too fast,” Mr. Luk said, “It’s hard to predict.”
In addition, the Chinese real estate market had entered a downturn around 2021, leading to a shrink in domestic furniture demand.
On a recent workday, the Foshan high-end furniture exhibition hall, “Louvre Palace,” was bustling with international buyers, while the adjacent mid-to-low-end mall, “New Union Furniture City,” was quiet, with sales personnel mostly engrossed in their phones.