The Office Market’s Newest Foe: Tariffs and Trade Wars

The office furniture industry was just starting to exhale after a stretch of solid leasing activity and a nice boost in CEO confidence — but then tariffs entered stage left, and suddenly everyone’s holding their breath again. The introduction of new import duties has thrown a wet blanket over what was shaping up to be a promising rebound in the commercial real estate market. Now, deals that were once steaming ahead are being iced, as companies rethink their office leasing strategies with a wary eye on potential recession signals.

For office furniture makers, this uncertainty is more than just a mood killer — it’s a logistical nightmare. Tariffs on imported materials and components could mean higher production costs at a time when clients are already nervous about capital investments. That big office refresh? Might be scaled back. That new HQ? Maybe next fiscal year. Even though demand for top-tier office space is still very much alive, the spaces themselves often need significant upgrades to attract tenants — and if outfitting them suddenly gets more expensive, everyone starts to second-guess.

There’s also a push to convert underused office buildings into housing, which sounds innovative but doesn’t exactly spell boom times for task chairs and meeting pods. The silver lining? While long-term plans may be stalling, short-term needs for quality furniture in hybrid setups and high-performance spaces still exist. The key for the industry will be navigating these tariff tremors while staying flexible — and maybe brushing up on domestic sourcing options, just in case the trade policy rollercoaster picks up speed.

***Disclaimer – This information/article above is just summaries of public industry topics and news. Not necessarily the thoughts, opinions or beliefs of Offices by Ace. Thank you