White House delays new tariffs on furniture, kitchen cabinets and vanities
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(WASHINGTON) In the latest reversal of his signature economic policy, President Donald Trump is rolling back tariffs on furniture, kitchen cabinets and vanities.
Higher tariff rates on those goods that were set to take effect Jan. 1 will now be delayed for another year, according to a White House fact sheet.
In October, the White House imposed a 25% tariff on upholstered furniture, kitchen cabinets and vanities. Rates for cabinets and vanities were set to go up to 50% in 2026, while upholstered wooden furniture — like sofas or chairs — were set to increase to 30%.
This move means that, for now, the 25% tariff stays in effect on all those goods until at least Jan. 1, 2027.
The White House cited “productive negotiations with trade partners to address trade reciprocity and national security concerns with respect to imports of wood products.”
Furniture prices have already been going up — the latest inflation report shows living room, kitchen and dining room furniture prices increased 4.6% in November compared to one year ago.
When the White House first announced the tariffs, stocks of companies that import furniture from overseas like Restoration Hardware, Wayfair and Williams Sonoma traded lower.
Amid many households’ concerns about affordability and rising prices, President Trump has already rolled back tariffs on more than 200 foods like coffee and bananas.
(NEW YORK) — The stock market surged to record highs in 2025, hurtling past tariffs, a government shutdown and fears of a bubble in artificial intelligence.
The S&P 500 — the index that most people’s 401(k)s track — climbed about 17% this year, as of Dec. 23. That performance marks a slight slowdown from two consecutive years of more than 20% growth, but the latest uptick extends a run of gangbusters returns.
The yearslong bull market presents a stark choice for investors as the calendar turns to 2026: Flee from ever-higher stock prices or trust that the good times will continue to roll.
Earlier this month, investment bank Morgan Stanley summed up its market forecast with a single question: “Can the bull market endure?”
Analysts attributed the rise of share prices this year to overlapping trends: Resilient corporate earnings, a series of interest-rate cuts meant to boost hiring and near-inexhaustible enthusiasm for artificial intelligence.
Tariffs, which threatened to derail markets in the spring, eased into an afterthought over the latter half of the year.
A day after tariffs were announced on April 2, major stock indexes shed about $3.1 trillion in value. The selloff amounted to the biggest one-day decline in markets since the onset of the COVID-19 pandemic. Days later, a major swathe of the tariffs were suspended, sending the market to one of its largest ever single-day increases.
“While tariffs remain a source of uncertainty, markets are pricing in limited disruption,” JPMorgan Wealth Management said in an investor note last month.
Even as markets proved resilient, the gains this year remained concentrated in a handful of tech giants, known as the magnificent seven: Alphabet, Amazon, Apple, Meta, Microsoft, Tesla and Nvidia. In September, worries over AI threw cold water on those stocks, causing their prices to waver.
In November, blockbuster earnings from chip giant Nvidia helped rebuke AI fears and shake markets out of the doldrums. Nvidia recorded $57 billion in sales over a three-month span, the company said, setting a quarterly sales record and demonstrating near-bottomless demand for the semiconductors at the heart of AI.
Nvidia, the world’s largest company by market capitalization, soared 40% this year, as of Dec. 23.
Still, some analysts have continued to voice concern about the market’s dependence on AI, as tech firms face increased pressure to turn massive capital investment into profits.
“Equity markets may remain exuberant but face rising risks,” investment giant Vanguard said in December, citing AI as a threat to growth.
Other risks abound, some analysts said. Key measures of the U.S. economy have shown mixed results, making the path forward uncertain. Hiring slowed sharply this year, while inflation remained about a percentage point higher than the Fed’s 2% goal. Economic growth withstood headwinds from tariffs and elevated interest rates, but consumer sentiment sputtered.
Ultimately, Vanguard said its baseline expectation remains optimistic, forecasting overall stock returns next year as high as 8%.
Some analysts predicted even better performance in 2026. JPMorgan Wealth Management predicted stock gains next year between 13% and 15%. BNY Wealth estimated the S&P 500 would end 2026 as high as $7,600, which would amount to about a 10% jump from where the index stood on Dec. 23. Morgan Stanley also forecasted an increase in 2026 of 10%.
In response to its own question about whether the bull market could endure, Morgan Stanley answered with little doubt, saying the odds of a recession next year are “extraordinarily low” and the upswing in stocks “still has room to run.”
In this photo illustration, a silhouetted individual is seen holding a mobile phone with a Sora of ChatGPT OpenAI logo displayed in the background. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
(NEW YORK) — The Walt Disney Company on Thursday announced plans to invest $1 billion in artificial intelligence company OpenAI, in a deal that will grant the company access to copyrighted characters from “Star Wars,” Marvel and other properties for users of AI short-form video generator Sora.
“The rapid advancement of artificial intelligence marks an important moment for our industry, and through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” Disney CEO Bob Iger said in a statement on Thursday.
Disney is the parent company of ABC News.
This is a developing story. Please check back for updates.
In an aerial view, two-story single family homes line the streets of neighborhood on January 13, 2026 in Thousand Oaks, California. (Kevin Carter/Getty Images)
(NEW YORK) — The rate on a 30-year fixed mortgage dropped below 6% for the first time in nearly four years, according to new data from Freddie Mac.
Rates have been hovering around 6% this year and averaged 6.76% last February.
“For the first time in three and a half years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last week’s milestone,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring homebuying season.”
This is a developing story. Please check back for updates.
