“ Tariffs create volatility, but they also drive clients to partners who offer stability and solutions, not just products. “ ALI MCMURTER, CREATIVE MATTERS
Ali McMurter, Managing Partner Creative Matters, Photo: Creative Matters
premium freight space can be,” Cohen observes, underscoring the value of early broker collaboration and supplier credit negotiations. “In this environ- ment, nimbleness and scenario plan- ning are key.”
to Maples Rugs, he cites. “We can step in fast and fill gaps or launch new pro- grams, which is increasingly important in this volatile environment.” Natco Home echoes this optimism. President Michael Litner describes plans to expand the company’s domes- tic productions of woven rugs in Maine and tufted rugs in Georgia, including new loom installations to meet growing demand. Still, there are challenges: “Retailers are conservative now, with some canceling or pushing out orders, sharing tariff burdens with suppliers, or cutting programs reliant on China.” Despite these headwinds, he sees strong potential for brands focused on USA-made products. The Handmade Rug Sector Faces Unique Challenges Not all segments share the same out- look. Handmade rug importers like Creative Touch , which sources prima- rily from India and Turkey, face more acute pressures. Founder Baki Ildiz recounts the “ripple effect” of recipro- cal tariffs in those countries, making quote requests difficult to finalize and squeezing already thin margins. “We absorbed tariff costs [on prior shipments because contracts were fixed],” Ildiz explains to Rug Insider. “Going forward, we had to add clauses for tariff volatility to protect our busi- ness.” Since handmade rugs cannot be domestically produced at scale, tariffs effectively raise consumer prices, risk- ing a shift away from middle-income
buyers. Ildiz fears this will push the market toward mass-produced, lower- quality rugs, threatening the craftsman- ship and ethical values that define the handmade category. Despite these challenges, Creative Touch remains committed to quality and sustainability. “We will not sacrifice craftsmanship or our mission,” Ildiz says. Agility and Diversification Companies with diversified global footprints report that tariffs, while difficult, validate their strategic choices. Creative Matters , a Canadian com- pany with production across Nepal, Thailand, India, and the U.S., has lever- aged its multi-country sourcing and internal logistics to shield clients from the worst tariff impacts. Managing Partner Ali McMurter describes a “futureproof” model built on diversification and tight control of design, production, and shipping. “Tariffs create volatility, but they also drive clients to partners who offer sta- bility and solutions, not just products,” she notes. The company’s ability to pivot production and reallocate orders across regions has become a competi- tive advantage. This approach aligns with broader mar- ket demands. Retailers increasingly seek suppliers that can manage risk, control lead times, and preserve margins amid an uncertain geopolitical landscape. “Cross-border thinking” and vertically integrated models are emerging as industry best practices.
Domestic Manufacturing: A New Growth Frontier
For some industry players, tariffs present a rare opportunity to spotlight the value and renewed relevance of domestic manufacturing. Wade Maples , co- owner of Maples Rugs , a family-run domestic manufacturer, views tariffs as a potential “leveling force” in a market long dominated by imports. Tariffs have forced a new conversation about the value of American-made rugs — and that conversation is just getting started,” he said to RUG INSIDER . “Our hope is that tariffs encourage retailers to take a fresh look at Ameri- can suppliers—not just in terms of logistics, but quality, lead times, and flexibility.” Early signals are promising, he adds, with retailers increasingly exploring USA-made programs as a hedge against overseas sourcing risks. Maples points to an A/B test with Amazon, where click-through rates on products labeled “Made in the USA” surged—a clear sign that consumers value domestically produced goods. “Retailers are not just hedging; they are actively rebalancing their assortments to be less import-dependent,” he notes. The ability to move quickly on design and production is a distinct advantage
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