You planned the budget. You chose your vendors. You scheduled your installation.
Then came the tariffs.
If you’re in hospitality procurement or construction, this isn’t just a headline — it’s your new daily headache.
With President Trump's early April announcement of significant tariffs on imported goods, including hospitality furniture tariffs, the once-reliable savings of overseas sourcing are rapidly evaporating, demanding a fundamental shift in procurement strategy for 2025.
For procurement service providers and general contractors in the hospitality sector, this news is a fundamental shift in how they must plan, budget, and execute projects. As hotel/hospitality tariffs from Trump’s administration continue to take shape in 2025, once-reliable overseas sourcing strategies are quickly becoming liabilities.
But here’s the good news: There is a way to cut through the uncertainty.
Sourcing your furniture, fixtures, and equipment (FF&E) domestically may be a long-term strategy for success. Let’s explore whether it’s the best move you can make.
The Tariff Shock: What Just Happened?
The newly enacted tariffs are a direct result of the administration’s renewed commitment to addressing trade imbalances and bolstering domestic manufacturing. For the hospitality industry, this has immediately translated into significant furniture import tax hikes, reaching up to 145% on certain goods, particularly those sourced from China, a nation the sector has heavily relied upon.
While the administration has temporarily paused some of these tariffs after negotiations with China, the underlying volatility and potential for future hospitality furniture tariffs remain a critical concern.
Costs are expected to rise sharply across hotel renovations and new builds due to these policy changes. Industry experts note that hospitality furniture tariffs — particularly those on Chinese and Southeast Asian goods — are already disrupting procurement schedules and forcing developers to reallocate budget mid-project.
These tariffs, part of a broader push to reassert domestic manufacturing, have hurt global hospitality sourcing strategies. Procurement contingencies are no longer just a good idea — they’re essential.
The Ripple Effect on Hotel Projects
These hospitality furniture tariffs are disrupting more than just invoices. They’re exposing the fragility of international sourcing and accelerating hotel supply chain disruption across the industry.
1. Budget Instability
Fluctuating tariffs make it nearly impossible to budget with confidence. A furniture tariff on a container from China can suddenly add tens of thousands to a project’s bottom line. If you signed off on FF&E contracts before April, you're likely eating costs you never anticipated.
2. Timeline Delays
Tariff-related bottlenecks at ports and additional customs inspections are already creating delays. Hotels are now building contingency time into their procurement timelines — an added layer of complexity.
3. Quality Concerns
Some teams are turning to lower-cost, lower-quality offshore alternatives to offset rising costs. However, subpar furnishings erode the guest experience and hurt long-term ROI.
4. Damaged Trust
Missed deadlines and blown budgets frustrate clients. Procurement providers and general contractors risk losing business and their hard-earned reps when international sourcing falters.
Looking North? Canada’s Not the Safe Bet Anymore
As import costs from Asia rise, some procurement teams are turning to Canada for FF&E supply. On paper, sourcing hospitality furniture from Canada seems like a safe compromise — close proximity, high-quality production, and fewer language or cultural barriers. However, reliance on Canadian hospitality furniture sources is not without its drawbacks.
Past trade tensions between the U.S. and Canada (e.g., aluminum and lumber disputes) show how quickly allies can become targets of new furniture import taxes.
Even without tariffs, sourcing furniture from Canada introduces complications:
- Border slowdowns due to customs processing or policy changes
- Currency fluctuation impacting final costs
- Limited recourse if deadlines are missed or product specs fall short
The bottom line? Outsourcing FF&E beyond U.S. borders — even to close partners — still exposes your project to forces you can’t control.
Why Domestic FF&E Is the Strategic Choice in 2025
With international sourcing becoming more unstable than ever, buying American has evolved from a patriotic ideal into a near-necessity for procurement. Here’s why:
1. Price Stability and Reduced Risk of Tariff Impact
Domestic suppliers are inherently less susceptible to the fluctuations and direct cost increases caused by import tariffs. While they may still be affected by tariffs on raw materials, the impact is often less direct and potentially more manageable than dealing with taxes on finished goods. This price stability allows for more accurate budgeting and reduces the risk of unexpected cost overruns during hotel projects.
2. Shorter, More Reliable Lead Times
Domestic production slashes shipping time from months to weeks — and avoids the headaches of port backlogs and customs holdups. This means tighter timelines and more agility in keeping your project on track, even when adjustments are necessary mid-stream.
3. Real-Time Communication & Collaboration
Forget the time zone math. Domestic partners operate on your schedule and speak your language — literally and figuratively. Communication is faster, clearer, and more collaborative. Need a spec change or replacement parts? Local suppliers can adapt in real time — reducing rework and miscommunication. This speeds up approvals, revisions, and delivery.
4. Higher Quality & Compliance
U.S. manufacturers operate under strict labor and safety regulations, which creates dependable quality and consistent production. You also have the option to visit production facilities or evaluate samples in person. This commitment to quality directly contributes to a superior guest experience and aligns with growing corporate social responsibility initiatives within the hospitality sector.
5. Greater Resilience to Global Shocks
Pandemics, wars, port strikes — recent years have made it clear how fragile global supply chains really are. Working with domestic FF&E partners insulates your timelines and costs from these external shocks.
6. Economic and Environmental Benefits
Domestic sourcing supports local jobs and reduces the carbon footprint of shipping goods halfway around the world — a value proposition that’s increasingly meaningful to clients and consumers.
Shipping large and bulky items like furniture across international borders can be prohibitively expensive. Domestic sourcing significantly reduces these transportation costs.
Don’t Wait for Tariff Policy to Settle — Act Now
A clear and consistent long-term tariff strategy may remain elusive. Waiting for clarity is not a viable procurement strategy — building resilience into your supply chain is. Opting for domestic FF&E is the most effective proactive measure to safeguard your projects from unpredictable pricing, delivery disruptions, and the far-reaching consequences of international trade disputes and hospitality furniture tariffs.
Ready to Leave Tariff Trouble Behind?
Whether you’re managing FF&E procurement for a boutique hotel or a nationwide brand rollout, you deserve a partner who can keep pace with your project’s needs — without tariff-related headaches.
Schedule a consultation today to learn how domestic sourcing can simplify your FF&E process, eliminate tariff risks, and help you deliver projects that stay on time and on budget.
