American furniture manufacturing does have one significant advantage in the US compared to its offshore competitors: proximity. Furniture is bulky to store and time-consuming to ship. The one manufacturer who realized this, John Basset, is the titular "Factory Man" who has kept his factories running by doubling down on just-in-time delivery, etc.
The Bassett family history and corporate provenance is weird and a bit incestuous (both figuratively and literally; J.D. married a cousin), and I really do recommend reading Macy's book for the full scoop.
The Chinese made cheaper furniture due to a lot of reasons, cheap labor, cheap resources, and presumably lower quality may be some of them, but selling at a loss definitely is not.