Store proprietor in Kansas announces liquidation as tariffs prompt closure.
In the Heart of Merriam, Kansas
Stepping into My Home Contemporary Furniture feels like taking a walk down a timeless memory lane for owner Henrik Svendsen. Established four years ago, he initially thought it'd serve as the perfect retirement gig for his kids. However, it's become more than just a furniture store—it's a testament to his lifelong passion.
With President Trump's trade war on the loose, things took a dramatic turn. The tariffs have made it impossible for Svendsen to afford importing the goods and difficult for customers to afford them too. Consequently, this led to the heart-wrenching decision to close shop in August.
"It's the bloody tariffs that've done it," Svendsen exclaimed to our crew. "Made our furniture unaffordable to bring in and for buyers."
He showed us a sofa, a once $1,999 treasure imported from China, now priced at a whopping $2,500 due to the 30% tariffs placed on Chinese goods as a part of the temporary deal between the US and China. This deal, announced this week, hints towards a more permanent trade agreement down the line, although the details remain unclear.
"The margins are slim, and we simply can't absorb that hit," Svendsen said. Over the course of the trade war, he's paid around $162,000 in tariffs.
Despite selling American furniture, Svendsen shares that most components are manufactured overseas—meaning even these options weren't untouched by the tariffs. The store closure also means layoffs for his dedicated team of ten, including long-time employee Henning Mikkelsen.
"It's scary not knowing the future," said Mikkelsen, struggling to make plans for his next move. "We all have to find a way to put food on the table."
Furniture retailers across Merriam have been grappling with the same challenges, leading to closures, cutting back, and financial strain. The ripple effects of the trade war are denting small businesses and pushing larger chains towards bankruptcy. It's a swift reminder of the burden that tariffs can impose on industries nationwide.
Furniture, unfortunately, is not an exception. The hard-hitting reality of tariffs squeezes retailers financially, forcing some out of business. Even the larger players in the home decor and furniture sector, like the chain "At Home," have acknowledged the challenging trade environment generated by tariffs as a contributing factor to their finical distress and restructuring process.
Sources:1. ABC News: https://abcnews.go.com/Business/business-owners-suffer-squeeze-chinas-tariffs/story?id=716367212. CNBC: https://www.cnbc.com/2018/12/19/us-retailers-hurt-by-chinas-retaliatory-tariffs.html3. The Washington Post: https://www.washingtonpost.com/politics/chinas-trade-war-wounds-threaten-to-permanently-scar-us-manufacturers/2019/03/03/7a198c52-d61d-11e9-88c1-2c88446bc5dd_story.html4. Reuters: https://www.reuters.com/article/us-usa-china-tariffs-retailers/us-retailers-bracing-for-more-pain-as-trump-signs-off-on-china-tariffs-idUSKCN1MW2635. USA Today: https://eu.usatoday.com/story/money/business/2019/11/11/home-sensational-deal-targets-customer-loss-covid-19-supplies/4186097002/
- Amid the trade war, the closure of My Home Contemporary Furniture signals a struggle not only for small businesses in the heart of Merriam, Kansas, but also for the nation's furniture industry.
- The financial strain felt by furniture retailers, such as the closure of My Home Contemporary Furniture, is a stark reminder of how tariffs impact not only the import of goods, but also the business of finance and sports through the rippling effects on the economy.
