Lovesac Says Tariffs and Shipping Risk Are Pushing Production Back to the United States

Stamford-based Lovesac is accelerating a shift toward U.S. manufacturing as tariffs, container logistics, and security risks squeeze the economics of overseas supply chains. The move, detailed in a new CT Insider report on Lovesac’s reshoring plans, comes after years in which many consumer brands chased lower costs abroad only to face rising trade friction and unreliable transit lanes.

CEO Shawn Nelson told CT Insider the company is now “completely out of China,” calling the current global shipping environment volatile and pointing to threats ranging from storms to criminal activity at sea. CT Insider also reported that Lovesac still had about 400 containers of Sactional product moving through supply routes or sitting in warehouses as of mid-December.

From our lens, this is the kind of corporate decision that signals a bigger market shift: the “cheapest” supply chain on paper is not always the cheapest when tariffs, port delays, insurance, and rework costs pile up. Brands that can make high-volume, repeatable components closer to U.S. customers get a clearer line of sight into inventory and lead times, plus steadier pricing for shoppers.

What Lovesac Makes In The US Today and What Is Changing

Lovesac’s beanbag-style “Sacs” already have domestic production footprints. The company’s latest annual filing states that Sacs are manufactured by two manufacturers in Texas and North Carolina. That matters because it shows Lovesac has lived experience with U.S. production, not just a press-release promise.

Sactionals, by contrast, have relied on a broad supplier base overseas. CT Insider listed prior outsourced Sactional manufacturing across China, Vietnam, Malaysia, Mexico, and other countries. The article also flagged another pressure point that brands often underestimate: customs scrutiny of “rules of origin,” which can shift duty exposure based on where key inputs are sourced and where final assembly occurs.

Reshoring Momentum Meets a Harsher Risk Reality

Lovesac is not acting in a vacuum. The Reshoring Initiative’s latest annual report says 244,000 U.S. manufacturing jobs were announced in 2024 via reshoring and foreign direct investment, a strong signal that companies are still reworking supply chains toward North America.

Security risk is also part of the math. Maritime piracy is not a talking point; it is a tracked data set. The International Maritime Bureau reported 116 piracy and armed-robbery incidents from January to September 2025, up from 79 in the same period a year earlier. The International Maritime Organization also maintains its piracy reporting system and monthly reporting framework, underscoring that these incidents keep occurring across key shipping corridors.

If Lovesac follows through with deeper U.S. production for modular furniture parts, the ripple effects could reach domestic cut-and-sew operations, foam and textiles suppliers, packaging, and regional logistics. For American manufacturing, each reshoring decision is less about slogans and more about sustained purchase orders.


About The Author

Mike

Mike

Mike leads research on the team, writes, and manages the YouTube channel. He’s been buying products made in the USA for as long as he can remember. It’s in his blood, growing up working in American manufacturing.