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2025
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08
US tariffs surge to 125%, accelerating the rise in the height-adjustable desk supply chain
After the implementation of the US "reciprocal tariff" policy on Chinese goods in April 2025, the height-adjustable desk industry is undergoing a dramatic restructuring of its supply chain. According to the latest US Customs tariff, the import tariff on height-adjustable desks under HS code 9403.9100.10 jumped from 34% to 125%, and the tariff exemption for small packages under $800 was eliminated. The surge in costs associated with direct mail has forced companies to adjust their global production capacity.
Overseas warehouses have become a key short-term hedge. Data disclosed by Lechuang Holdings shows that local shipments through its Georgia, USA, overseas warehouse can reduce tariff costs from 125% to a sales tax range of 6%-10%. For example, for a $1 million shipment of height-adjustable desks, using an overseas warehouse model can save approximately $1.15 million in tariffs. As a result, the company's North American market revenue increased 37% year-on-year in the second quarter of 2025, and the number of clients served by its overseas warehouses increased to 926. The head of cross-border logistics at Dunhuang.com stated that the utilization rate of overseas warehouses by sellers of height-adjustable tables on the platform has soared from 28% last year to 76%, and delivery times in North America have been reduced from 30 days to 1-3 days.
A mid- to long-term trend of capacity transfer is emerging. Several leading companies have announced plans to establish production bases in Mexico and Canada. Among them, Logsoc plans to invest 500 million yuan in a smart factory in Mexico, expected to begin production in 2026 with an annual production capacity of 500,000 units, directly serving the North American market. A Betzers report indicates that China's height-adjustable table exports to the US will decrease by 29% year-on-year in the first half of 2025, while Mexico's exports to the US will increase by 187%, becoming the largest alternative source. "Although localizing the supply chain increases production costs by 15%, it completely avoids tariff risks," said a supply chain director at a company.
Local brands are experiencing development opportunities. FlexiSpot, a US brand, is leveraging tariffs to expand its market share. Its high-end models with health monitoring features saw a 68% increase in sales in the second quarter, increasing its market share to 19%. Market analysis points out that tariff barriers will accelerate industry differentiation, and companies with localized supply chains are expected to occupy more than 60% of the US market share.
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