Future-Proofing British Furniture

October 1st 2025

The last ten years have handed us an abundance of crises — a global pandemic, geopolitical tensions, armed conflicts, political musical chairs, and cyber-attacks, to name but a few — all contributing to supply chain chokepoints and stressed businesses.

Some businesses, typically the better-resourced ones, have employed their pre-existing risk management tools and weathered multiple storms reasonably well. Others have struggled, putting out one fire after another with mixed success — cases in point: Made.com, Carpetright and Joseph Furniture.

Kudos to those businesses that have comprehensive business continuity plans ready to roll out at a moment’s notice. For the rest — when you see that iceberg coming straight for your Titanic — it’s crisis management time, and an opportunity to plan for the next one.

Another Day, Another Disaster

Post-Liberation Day, sky-high US tariffs hit like a full-blown migraine, rocking global trade. According to Big Furniture Group’s recent survey, as of February 2025 British furniture exports remain strongest in the EU, with the US coming second, while China dominates imports.

While EU-bound shipments are slipping, exports to North America are rising, and China’s share of UK imports keeps growing. No wonder the tariff shock sent currencies, stocks, and businesses into a tailspin.

Since then, things have calmed slightly. In relation to China, while the 90-day truce lasts, most imports will face a base tariff of 30%. However, additional tariffs may apply to specific components such as steel and aluminium (25%). The future UK-US trade deal removes 25% tariffs on UK steel and aluminium, but the zero-tariff quota remains unspecified, and finished goods still face a 10% tariff.

Meanwhile, the EU remains a safer bet under the UK-EU free trade deal, with further strengthening likely post–May 19 summit, although the UK must carefully balance US and EU interests.

Take Stock

While US tariffs remain in place, a granular assessment of rules of origin (ROO) will help to clarify their impact on business models. For example:

• A Chinese steel bed frame exported to the US as part of a UK-made bed may face a 25% tariff on the bed frame’s value (if ROO deems it Chinese-made), plus 10% on the finished bed.
  

• If the bed frame is classified as UK-origin, then there’s zero tariff (within quota), plus 10% on the finished bed.
  

Tariffs aside, if that iceberg of a crisis is inevitably approaching, your crisis response checklist could include the following:

Identifying how the event impacts your business's ability to fulfil contracts, namely:

• Which contracts and obligations are affected?

• How severe is the disruption and how long might it last?

• How vital is the affected contract to your business?

Engaging with suppliers and customers to understand:

• production delays, stock availability, and alternative supply options (e.g. local recycling).

• whether customer demand remains unchanged

• which customers must be prioritised and are there some who will allow flexibility (e.g., smaller orders, extended delivery terms, alternative parts, waived penalties).

Examining key terms, including:

• Payment rights

• Penalties

• Liability Limitations

• Force Majeure

• Dispute Resolution

You may find, much to your relief, that your contractual INCOTERMS-based delivery terms shift tariff risks onto US buyers and a price adjustment clause helps absorb rising costs efficiently.

Are There Workarounds?

If delay or default on your part seems likely, notify customers early and, where possible, renegotiate impractical terms — ensuring proper documentation of any revised agreement. If renegotiation isn’t possible, consider the following.

1. Force Majeure

A well-crafted force majeure clause can excuse contractual non-performance caused by events beyond the affected party’s control — making it a key tool in supply chain disruptions.

However, several factors can render it inoperative:

• it must be explicitly stated in the contract as courts will not imply it;

• courts narrowly construe force majeure clauses, and generic catch-all phrases (e.g., "events of similar nature") are often ineffective;

• the event alone must have caused the non-performance;

• the clause may excuse non-performance only if the event has made it impossible or impracticable, not merely difficult or uneconomic;

• the affected party must take reasonable steps to minimise the event's impact.

2. Frustration

Not talking about a punching bag - "frustration" is actually a legal thing.

If a contract lacks a force majeure clause, the doctrine of frustration may apply when unforeseen circumstances make performance radically different from what was originally agreed, excusing further obligations.

That said, explaining frustration to non-lawyers tends to induce yawns so best left to a lawyer to geek out over.

3. Dispute Resolution

Before invoking force majeure, frustration, or other legal protections, assess the wider impact on your business, as your customers might be unhappy with your decision, which could potentially lead to a dispute. Legal conflicts drain resources, disrupt operations, and harm reputation, so weigh the economic and relational risks carefully.

If a dispute arises:

• maintain clear documentation and record verbal discussions;

• avoid statements that could be interpreted as a waiver of contractual rights;

• take steps not to burn bridges with the company you are in dispute with by establishing two channels of

• communication- in case you want to do business with them again.

4. Insurance

Specialist insurance products can help mitigate financial losses caused by supply chain disruptions. Business interruption insurance covers lost income and extra expenses when operations are halted, while supply chain disruption insurance protects against financial setbacks due to third-party supplier failures and even the inability to perform a contract.

Dodging the Next Curveball Before It’s Thrown

Both a blessing and a curse of today's trade world is its inter-connectedness. As such, geographic diversification across regions is perhaps the most effective way to minimise supply chain disruptions. Along with that, updating contracts by incorporating robust protections, including the right to switch suppliers, beneficial delivery terms, price adjustment clauses and force majeure is a key method to create a cloak of protection over you.

This article does not constitute legal advice. For a conversation about a comprehensive crisis response plan, call Natalia Samodina on 07747131233 or email at natalia@interiordesignlawyer.co.uk