Serine
For many, My Home Contemporary Furniture may look like just another showroom.
But for owner Henrik Svendsen, the store represents years of hard work and dreams of a family legacy.
Now, due to the economic strain brought on by escalating tariffs, Svendsen has announced plans to shut down operations in August.
Tariffs Push Business to the Brink
Svendsen opened his store four years ago, envisioning it as a long-term investment for his children’s future. But recent tariffs on Chinese imports have made it impossible to maintain affordable pricing.
“It’s affected us so much that we decided to liquidate everything,” Svendsen told CBS News.
For example, he pointed out a Chinese-imported sofa that would have previously sold for $1,999, now costing around $2,500 or more due to a 30% tariff increase.
Mounting Costs and Slim Margins
Since the onset of the U.S.-China trade conflict, Svendsen says he has paid over $162,000 in tariffs. The business model of everyday low pricing left no room to absorb the additional costs.
“Margins are tight, and we just couldn’t make it work,” he said.
The store sources 99% of its inventory internationally, with half coming from China and the rest from Mexico, Thailand, and parts of Europe. Even American-made furniture is not exempt from tariff impacts, as many of its components are manufactured overseas.
Employee Layoffs Add to the Blow
The store’s closure will also mean job losses for 10 employees, including longtime staff member Henning Mikkelsen.
“It’s scary not knowing what the future holds,” said Mikkelsen, who is uncertain about his next steps.
The story of My Home Contemporary Furniture is a stark example of how global economic policies can devastate local businesses.
For Henrik Svendsen, a store that was meant to be a family legacy has instead become an unfortunate casualty of international trade tensions.
As the store prepares to close its doors, it highlights the far-reaching impacts of tariffs on both entrepreneurs and their employees.