Experts weigh in on how tariff will impact local furniture industry

NORTHEAST MISSISSIPPI (WCBI) – As trade tensions between the United States and China heat up, furniture manufacturers across North Mississippi looked at how they may be impacted.

For nearly fifty years, Hassell Franklin has been at the forefront of furniture manufacturing in Northeast Mississippi, weathering good and challenging economic times.

The recent trade war between the U.S. and China is making an impact on Franklin’s business.

“These tariffs, obviously, our intellectual properties have been stolen by China for all these years, and that needs to be changed,  obviously with tariffs, in our industry, it brings on great issues,” said Franklin.

President Donald Trump followed through on a threat to raise tariffs on Chinese made goods to 25%.

And while more than a thousand workers make furniture at Franklin’s Houston plant, some of the raw materials come from China.

Those materials will now cost more.

“Normally when you go for an issue, and you strive to solve that issue, there’s some pain along the way and certainly there’s pain along the way, but in the end, this is what we need to be doing,” said Franklin.

Mississippi Manufacturer’s Association President Jay Moon is an advocate for the industry in the Magnolia State.

He said furniture makers are bracing for short term impacts, but also see the bigger picture.

“It’s a course correction and what we’ve asked the administration to do, is we understand we need to get rogue players like China to follow trade laws, not violate them, not steal intellectual property rights, so we know it’s necessary to make a course correction, we ask them get it done, get to the table , get it negotiated and let’s move on,” said Moon.

Moon said manufacturers are also looking for other, non-Chinese sources of raw materials until trade talks resume.

Tariffs were increased from 10% to 25% on Chinese exports.