Tariffs on Chinese Furniture Didn't Create Jobs

Dongguan, China, May 26, 2011--Tariffs put on China's furniture imports to the U.S., similar to those being levied in the flooring industry, have not pushed business to U.S. manufacturers or resulted in U.S. job growth, according to the Wall Street Journal.

When Lawrence Yen's China-based Woodworth Wooden Industries was impacted, in January 2005, by import tariffs on Chinese-made beds, nightstands and the like, Yen simply opened a factory in Vietnam. He is currently building another plant in Indonesia. 

Imports now account for 70% of the U.S. market for beds and similar furniture, up from 58% before the tariffs were imposed.

But the tariffs have succeeded in helping to curb bedroom furniture imports from China, which accounted for $1.2 billion in 2004 before the tariffs were imposed and $691 million last year. However, during the same time, bedroom furniture imports from Vietnam have jumped from $151 million to $931 million.

The Wall Street Journal notes that the only Americans getting work due to the tariffs are the lawyers hired, by both U.S. and Chinese manufacturers, to navigate the whole mess.