Late on September 25, Donald Trump announced to put a tariff on some new sector. Pharma has been implemented 100%, 50% on furniture and 25% on heavy truck making companies, which will be applicable from October 1. 100 % tariff on pharma has caused a big shock to Indian companies, as a large exposure of Indian companies is in the US Pharma sector. With this tariff, companies like Sun Pharma, Natko, Arvindo, Lupin and Boyocon may have to bear great losses.
This is the matter of pharma sector … but do you know that India also does furniture export to America at a big level? India’s total furniture export market size was about $ 5 billion in 2022-23, while the estimated size of the global furniture market in 2023 was $ 23 billion. Bhatar’s furniture export market is growing with CAGR of more than 6 percent. The target has been set to reach $ 43 billion by 2030.
India has become a big player in supplying furniture in the world. It exports furniture made of wood, plastic, cane and bamboo. Most of India’s furniture go to the US, France and Netherlands. Now Donald Trump has also imposed 50 percent tariff on this sector, which is another major setback for India.
How much furniture exports India to America?
According to a report by Tradiconomics, in 2024, exports in the category of furniture / lighting / pregnant building etc. to the US from India were about $ 1.14 billion (about 10 thousand crores). At the same time, in 2023, India had faced $ 1.07 billion in furniture, beding, matresses and cushion categories. A report by the World Bank states that India had exported only Wooden furniture worth $ 32.46 million.
Which company sends how much furniture to America
- Nilkamal ltd: It supplies furniture like plastic-cold, rax, office series to America. According to the year 2023, it exported a salmon of 55 to 60 crores to America.
- Godrej interio: Home and office furniture, corporate contracts have also been meeting this company from America. The company has not publicly shared the export data, but it is estimated that it exports crores.
- Carisil: It is the creator of Composite Quartz Kitchen Sink. Its products include quartz and stainless steel sinks, chimney, cookkuk, oven and dishwasher, built-in kitchen equipment, taps and engineered things. It also has a big exposure in America. The company acquires 21.5 percent revenue from the US.
- Featherlite Industries: This company has also exported office furniture to America. This company works in B2B business with America.
- Sheela Foam (Sleepwell): This company does America as well as global exports. It exports America to Matresses, Beding. Similarly, the kurlon enterprise also exports the skin beds and matresses.
- Some small companies also supply furniture to the US at a large level, including furniture, Durian, Various EPCH, Best of Export and Fashion Intereo etc.
What should India do?
India’s products can be expensive in America due to tariffs on furniture, due to which India’s exports can be reduced. In such a situation, India should look for a new market, so that the effect of the tariff is less on the load.
Impact on share also
The impact of Trump’s 50 percent of the tariff is visible on the shares of some furniture companies listed in the market. Neelkamal shares are falling 1 percent to about 1500 business. At the same time, the shares of Godrej Consumer Product have fallen by 1.54 percent. Apart from this, Carisil’s shares fell by 9.5 percent to Rs 768.15.
(Note- Be sure to help your financial advisor before investing in any share.)
—- End —-