STAYING THE COURSE: WHY TARIFFS WON’T DERAIL HOSPITALITY FF&E SUPPLY CHAINS

 

Canoe Hospitality’s Managing Director, Shawn Fowler shares an informed perspective on the current trade landscape—explaining why global sourcing remains strong and how thoughtful, diversified procurement strategies will continue to keep hospitality projects on track.

tarifFS stir concern across the hospitality industry

Recent headlines surrounding tariff hikes and reciprocal trade actions have stirred understandable concern within the hospitality development community. With the White House’s initial executive order initiating reciprocal tariffs—and more recent news escalating the tariff on Chinese imports —many owners, operators, and design teams are asking: What does this mean for our FF&E procurement strategies?

While the news cycle has been intense, it’s important to zoom out and look at the bigger picture. And the bigger picture is reassuring. Yes, tariffs are being levied. Yes, they affect key manufacturing regions. But no, this does not signal the kind of disruption we faced during the early pandemic era. In fact, today’s hospitality supply chains are more resilient, more diversified, and more agile than ever before.

What’s Happening Now—and Why It’s Not Time to Panic

On April 9th, the U.S. effectively raised tariffs on Chinese imports to 145%—a significant increase that will affect a range of custom furnishings, lighting, textiles, and carpet originating from China.  At the same time, however, the administration simultaneously announced a 90-day pause on reciprocal tariffs exceeding 10% for over 75 countries.  During this period, tariff rates for affected nations will be temporarily capped at 10%, regardless of previously announced increases, allowing space for negotiation and bilateral review.

This pause is more than a procedural delay; it’s a positive signal. It reflects a willingness on the part of U.S. trade partners to engage in meaningful dialogue and work toward equitable solutions. At Canoe Hospitality, we’re optimistic that many of these tariffs will be significantly reduced or possibly eliminated as a result.

The message for our industry is clear: global supply lines remain open. Manufacturing has not halted. There is no impending bottleneck. With an informed strategy and experienced partners, hospitality projects can—and will—advance as planned.

We've Been Here Before—And We're Ready

This is not uncharted territory. When tariffs on Chinese goods were first introduced in 2018, the hospitality procurement and manufacturing sectors responded swiftly and strategically. The industry reduced reliance on a single country and cultivated trusted relationships across a wider network of global suppliers. The outcome was a well-diversified sourcing strategy that continues to serve our clients today.

Since then, much of our guestroom casegoods production has transitioned to Vietnam, where a robust infrastructure and skilled labor force have made it a powerhouse in furniture manufacturing. We’ve also deepened our partnerships in Indonesia, particularly for guestroom and exterior furnishings.  These partners have proven not only dependable but design-literate, with the technical expertise required for today’s luxury and lifestyle hotel projects.

While guestroom lighting and components remain heavily sourced from China, we are actively vetting and piloting production in new regions. In the meantime, many of our longstanding manufacturing partners in China are showing flexibility—absorbing significant percentages of tariff-related costs to preserve long-term relationships and stay competitive.

FF&E Procurement Is Still Global—Just More Strategic

Rather than retreating from international sourcing, we see this moment as an opportunity to reaffirm our commitment to thoughtful, balanced procurement. There is no shortage of capable manufacturers worldwide—and many are well-positioned to take on increased volume should trade patterns continue to shift.

Vietnam remains the dominant force in custom hotel furniture, and we anticipate continued growth in its market share. Indonesia continues to deliver exceptional craftsmanship across both interior and exterior furnishings. Mexico and Canada, with their geographic proximity and established FF&E manufacturing capabilities, remain reliable partners—and under USMCA, most FF&E products imported from these countries are exempt from current U.S. tariff actions.

Meanwhile, Turkey is gaining traction beyond textiles, emerging as a player in casegoods and seating production. India—already a trusted source for rugs and decorative items—is scaling up in new FF&E categories thanks to its skilled labor force and growing infrastructure. Portugal, long respected for its heritage craftsmanship, is also surfacing as a boutique solution for select furnishings. Far from being a constraint, the current trade landscape may, in fact, stimulate continued innovation and diversification in the global sourcing map.

Domestic Manufacturing—A Viable Option in the Right Context

While much of the hospitality sector has historically looked overseas for cost-effective production, the shifting tariff landscape is making U.S.-based manufacturing increasingly competitive in certain categories—particularly for Suites, Public Space, and Restaurant FF&E.

Though domestic production may carry a higher base cost, the equation changes when factoring in tariff rates, ocean freight, and extended shipping timelines. On select projects—especially those with tight deadlines or a strong emphasis on quality control and sampling—domestic sourcing is proving to be not only viable, but strategically advantageous. Designers, owners, and operators benefit from the ability to visit production facilities during the prototyping phase, enabling nuanced refinements that are harder to achieve remotely.

Importantly, the U.S. has long been—and continues to be—a leader in the production of hospitality upholstery, carpet, and wallcoverings. These categories remain a stronghold of domestic manufacturing, offering reliable lead times and consistent quality. In today’s evolving trade climate, they provide a foundation of supply chain stability for many projects. While U.S. manufacturers may not yet compete with Asia on volume or labor costs, we expect to see its role grow as the market continues to evolve.

Tariff Risk Is Real—But It’s Also Manageable

Canoe has long incorporated tariff contingencies into our project budgets and forecasts. Our procurement planning anticipates volatility—ensuring that clients are protected from sudden shocks to their budget or timeline.

When policies shift, we respond quickly: reassessing manufacturer viability, renegotiating where appropriate, and pivoting when necessary. We are in constant communication with fabricators, and in many cases, we’re seeing them respond with urgency and cooperation.

It’s also important to note that tariffs are calculated based on the cost of the manufactured goods, not on the final selling price or total paid by the buyer. This distinction can help moderate the perceived financial impact, particularly in early budget conversations, though the actual costs can vary based on the manufacturer’s pricing structure and ability to negotiate down their supply chain.

Looking Ahead with Confidence

The hospitality industry is no stranger to complexity. Over the last two decades, our team has navigated supply chain breakdowns, freight rate surges, labor shortages, and inflationary pressure. Through it all, we’ve adapted—not by retreating, but by refining how we source, collaborate, and deliver.

At Canoe Hospitality, we see the current trade climate as an opportunity to further strengthen our networks, refine our processes, and deliver value through creative problem-solving. Our clients and design partners can rest assured that FF&E supply chains remain active, diversified, and flexible. Yes, tariffs on Chinese goods are high for now. But the rest of the world remains open for business—and open to negotiation. Our manufacturing partners are producing. Our logistics teams are moving product. And our clients’ properties are being furnished and opened on schedule.

To our industry peers and partners: keep moving forward, stay informed, and surround yourself with partners who know how to navigate complexity.  Because this isn’t a roadblock. It’s just a new route. And we know the way.

 

ABOUT THE AUTHOR

Shawn Fowler is Managing Director at Canoe Hospitality, a leading FF&E and OS&E procurement firm specializing in fully-custom, design-forward hospitality and commercial projects.

Trade policy is changing—but your project doesn’t have to slow down. Let us know how we can help move your project forward.

 
 
Shawn Fowler