By Giancarlo Navach
MILAN (Reuters) -RBRItalian furniture maker Natuzzi expects its U.S. revenues to undershoot its target by around 20% and come in at 85–90 million euros in 2025 due to a 15% tariff imposed by the Trump administration on furniture imports, and a weaker dollar.
“The U.S. market was and remains fundamental for us, and it’s hard to replace for a high-end brand like ours,” Mario de Gennaro, Chief HR, Organization & Legal Officer, told Reuters. The company is listed on the stock market in New York and generates just under a third of its annual revenue in North America.
Natuzzi, headquartered in Santeramo in Colle, close to the city of Bari in southern Italy, said the combined impact of tariffs and a roughly 14% depreciation of the dollar against the euro has left it on course for a revenue shortfall of about 20 million euros this year compared to its initial projection of over 100 million.
Following the tariff hike from 10% to 15% in April, Natuzzi experienced a temporary slump in U.S. sofa sales, with volumes initially dropping 30%. While the situation has since stabilised, consumer prices in the U.S. have risen 5–6% for directly managed stores and up to 15% via other retailers.
“The market sets the price. And if consumers see a price they consider too high, they end up turning to U.S. competitors who benefit from the tariff situation and the weaker dollar,” he added.
Natuzzi, which ended 2024 with 319 million euros in revenues and employs 3,200 people globally—2,000 of them in Italy—recently reshored part of its Asian production to its plants in Puglia to serve the U.S. market. That decision shielded the company from higher tariffs on Asian-produced goods.
The sales crisis in the U.S. is affecting Italian factories. However, De Gennaro ruled out the possibility of Natuzzi producing in the U.S., but warned that further production shifts could pose risks to Italian jobs.
The company is in talks with Italy’s Labour and Industry Ministries and unions to explore measures to safeguard domestic manufacturing.
(Editing by Keith Weir)
