A major US bank has issued a stark warning to British consumers: if you are planning to buy a new sofa, dining table, or other big-ticket home items, you should consider making the purchase sooner rather than later.
Why Prices Are Expected to Climb
Analysts at Wells Fargo state that household goods, and furniture in particular, are likely to become significantly more expensive in the coming year. The primary driver is the full implementation of new import duties, which are set to take full effect in early 2026.
Lauren Murphy, Managing Director of Wells Fargo Retail Finance, explained that retailers have been strategically managing their stock. "In early 2025, retailers strategically front-loaded inventory purchases before they were hit by additional tariffs," she told Fox Business. This has allowed stores to offer promotions and hold prices steady during the recent holiday season.
However, this grace period is expected to end. Murphy warned that the new tariffs will make future shipments more costly, and these increased expenses will likely be passed on to shoppers. "Tariffs have not yet been passed across in full, so it is reasonable to expect some price increases in 2026," echoed Neil Saunders, Managing Director at GlobalData, in comments to The Daily Mail.
Furniture and Home Furnishings Most at Risk
The sector facing the steepest climbs is home furnishings, which has been subjected to specific, sector-targeted tariffs. Furniture is especially sensitive due to its high initial cost; even a modest 10% price increase could be enough to deter potential buyers, Murphy noted.
Some retailers have already begun to raise prices quietly, and shoppers could see higher tags on showroom floors within months. "This especially applies to home furnishings as they have been subjected to sector specific tariffs," Saunders confirmed.
While other retail categories like clothing will also feel the impact, the effect may be more gradual as lower price points can somewhat soften the tariff blow.
Consumer Advice and Broader Impact
Experts advise consumers to be proactive and shop around. Saunders cautioned that retailers must be careful, as weak consumer demand means shoppers may simply avoid stores that hike prices too aggressively. He suggested looking at alternative channels like resale or off-price retailers for better deals.
The warning on furniture follows a pattern already seen in other sectors. The grocery industry, for instance, experienced rapid price increases earlier this year. Products with short shelf lives, like food and beverages, could not be stockpiled, so new tariff costs were reflected in shop prices almost immediately.
Everyday items such as cheese, chocolate, and coffee saw noticeable hikes. Consulting firm Peacock Tariff Consulting suggested in August that tariffs could add an extra $40 to the average American's weekly grocery bill by the end of 2025, indicating the scale of potential cost increases.
For now, the message from finance and retail experts is clear: for major home purchases, 2025 may be the year to buy before the full weight of new import duties lands on the consumer in 2026.
