How Tariffs are affecting Hotel and FFE
from Innvision Hospitality on Apr 30, 2025
①Explain the impacts to hotel projects
②Anticipate what to expect going forward
③Guide hoteliers on steps to take.
Tariff Effects on Hotel FF&E
Many casegoods, lighting, and fabric products are still made in China. While those groups are facing 145%+ tariffs, a large number of casegoods producers in the US and other countries have no tariffs.
Through the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) in 2020, some seating and casegoods providers in neighboring countries enjoy zero tariffs. The rule of “substantial transformation” allows finished products with imported components to still be a product of the U.S.A. if they meet country of origin requirements.
With today’s tariffs and those that will apply after the 90-day pause driving up the total price of many imported goods, demand may increase for North American FF&E producers. If this happens, since increasing manufacturing capacity takes time, product lead times may expand. We saw something similar with COVID, but one positive that came out of the pandemic is that many manufacturers learned how to work smarter to handle rising volumes.
What to Expect Next
We believe more hotel FF&E suppliers will begin or continue diversifying away from China. This, along with shifts in demand toward domestic producers resulting from tariffs, should increase US and other North American manufacturing of casegoods and additional FF&E product categories.
Steps Hoteliers Can Take to Minimize Tariff Impacts
Select an experienced design and procurement partner with strong relationships across a strategic set of manufacturers. The right FF&E partner can usually provide options that can make a big difference in a hotel project.
Innvision has built excellent, long-standing relationships with US manufacturers who enjoy zero tariffs and others who face low tariffs. Together, we can minimize hotel FF&E tariffs and product pricing for our clients.
Innvision