Restoration Hardware Plans to Move Manufacturing Back to U.S.

A California furniture and hardware company is planning to expand its manufacturing in the United States thanks to President Trump’s tariffs on Chinese imports.

Restoration Hardware, known simply as “RH,” offers luxury furnishing collections from dining room tables to home decor with about 35 percent of its products being made in China last fiscal year. For Fiscal Year 2019, RH executives said that about 25 to 30 percent of its products will be manufactured in China.

Trump’s recent hiking of tariffs on $200 billion worth of Chinese imports to 25 percent, though, has RH executives planning to expand their manufacturing base in the U.S. That expansion will mean less and less production in China.

In the company’s latest financial report, executives said:

Regarding China tariffs, we have renegotiated product costs and selectively raised prices to mitigate the impact of the increase from 10 to 25 percent. We are also moving certain production and new product development out of China, plus exploring new partnerships and expanding our own manufacturing facilities in the United States. Long term, we do not believe the current trade climate will impair our ability to achieve our stated financial goals and the expected impact from the increased tariffs is embedded in our guidance for the year.

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