(Corrects Sept. 26 to show that Aaron Zagha is the chief marketing officer of Newton Baby, not CEO, in paragraph 15)

By Aishwarya Venugopal, Neil J Kanatt and Helen Reid

(Reuters) -Shares of U.S.-based furniture companies that rely on imports slipped on Friday as President Donald Trump's latest tariff salvo targeted couches and cabinets and analysts reiterated warnings about the longer-term effects of likely price rises.

Trump announced a 50% tariff on imported kitchen cabinets and vanities, along with a 30% levy on upholstered furniture, which are set to take effect on October 1.

Initially, companies that produce domestically like La-Z-Boy ( LZB ) and Ethan Allen jumped on the news. But importers also pared some early losses, as the broader market shrugged off the new duties, announced in conjunction with tariffs on imported trucks and branded pharmaceuticals.

The import duties will make it more challenging for companies to hold down prices, while executives in the industry have raised concerns over the lack of manufacturing capacity in the United States, as the country relies heavily on imports from China, Mexico and Vietnam.

Chief executives at Williams-Sonoma ( WSM ) and RH, formerly known as Restoration Hardware, have both raised that concern in recent earnings calls. Williams-Sonoma's ( WSM ) shares fell nearly 2% on Friday, while those of RH were down 4%. 

Scaling up domestic production "would require years of investments in building the facilities and workforce that most in this industry cannot afford to make," RH CEO Gary Friedman had said earlier this month.

Companies with a heavier U.S. presence were in better shape. Shares of the La-Z-Boy ( LZB ) gained about 2%, while Ethan Allen Interiors ( ETD ) was up 1.8%.

"We will continue to evaluate its impact, but believe our strong manufacturing presence in North America should help us navigate these challenges," Ethan Allen CEO Farooq Kathwari said.

The company makes about 75% of its products in North America.

Wayfair ( W ), Williams-Sonoma ( WSM ), La-Z-Boy ( LZB ) and RH did not immediately respond to requests for comment.

"La-Z-Boy ( LZB ) and Ethan Allen could benefit if they are able to hold pricing while others raise prices, and because of potentially better availability of products," Michael Gunther, vice president, head of insights at Consumer Edge, said.

Jurgita Radzevičė, CEO at SBA Home, a Lithuanian furniture manufacturer that supplies Swedish furniture retailer IKEA, said that it isn't clear what tariffs would apply to its exports to the United States.

"We do not know whether the new tariffs will be added to the existing ones or replace them, and how they will be applied to European businesses in practice," she said, noting that they were finalizing a furniture factory project in North Carolina.

Privately held baby furniture company Newton Baby said it would have to raise the prices of its $600 cribs that are manufactured in Vietnam, depending on the overall tariff rate, Chief Marketing Officer Aaron Zagha said.

"There's very few cribs made in the USA."

The company also sources products from Thailand, Turkey, India and Pakistan.

Arin Schultz, chief growth officer at privately held mattress and furniture company Naturepedic, said the company is holding off on an order of upholstered headboards from India after Trump's announcement.

"We're definitely going to have to raise prices from where we were intending on launching the product," Schultz said of the upholstered headboards. 

Shares of online retailer Wayfair ( W ), which relies heavily on imports from China and Vietnam, were little changed. 

Prices for everything from clothes to TVs have gone up in recent months as manufacturers and retailers struggle with the ever-changing tariff environment while also trying to offset rising commodity and supply-chain costs.

"Tariffs take time to trickle down to consumers. Most holiday goods will be imported before October 1, so the new duties are unlikely to dent sales. But they add another hurdle for home improvement and home furnishings retailers, already grappling with a stagnant housing market," eMarketer's Zak Stambor said.