The 2025 tariffs represent a more severe disruption than the 2018 round as past mitigation efforts, including shifting supply chains and raising prices, are less viable now, BofA Securities said in a note Tuesday.
Historically, higher home furnishing prices correlate with lower volumes, and given weak consumer sentiment and a soft housing market, price hikes in 2025 could be particularly damaging, the firm added.
BofA said Wayfair's (W) broad supplier network gives it flexibility but new tariffs could be harder to mitigate than in 2018 or 2021.
RH (RH) is particularly vulnerable to tariffs, with major sourcing from Vietnam and Southeast Asia, according to the note.
Etsy's direct exposure to tariffs is low, with only 25% of products sourced internationally, but recession risks could still negatively impact growth, the firm said.
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