President Donald Trump announced on Monday the imposition of 10% tariffs on imported timber and lumber, alongside 25% duties on imported kitchen cabinets, bathroom vanities, and upholstered furniture, as part of his ongoing tariff strategy against global trade partners.
Trump issued a presidential proclamation arguing that these imports threaten US national security, thus justifying the new tariffs under Section 232 of the Trade Act of 1974.
According to the proclamation, the initial tariff rates will commence on October 14, with duties set to rise on January 1 to 30% for upholstered wooden products and 50% for kitchen cabinets and vanities from countries that do not reach an agreement with the US.
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This tariff action is the first among three sectors Trump identified for new duties as early as October 1, including patented pharmaceuticals and heavy trucks. However, Monday’s announcement schedules the start of tariffs on lumber and furniture for October 14 at 12:01 a.m. EDT (0401 GMT).
The proclamation claims that wood product imports are undermining the US economy, threatening wood mill operations, disrupting supply chains, and decreasing utilization of the domestic wood industry.
“Due to the condition of the US wood industry, the nation may struggle to meet demands for wood products vital to national defense and critical infrastructure,” the statement noted.
The order further explained that wood products are crucial for “building infrastructure for operational testing, housing and storage for personnel and materials, transporting munitions, and as components in missile-defense and thermal-protection systems for nuclear-reentry vehicles.”
Who will be affected?
The new tariffs primarily impact Canada, the largest supplier of softwood lumber to the US, where producers already face combined US anti-dumping and anti-subsidy tariffs around 35% due to longstanding disputes over timber from Canadian public lands.
Canada, aiming to negotiate US tariff reductions through a broader update of the 2020 US-Mexico-Canada trade agreement, has pledged up to C$1.2 billion ($870 million) to support its softwood lumber producers against previous duties.
Mexico and Vietnam are increasing their exports of wooden furniture to the US after Trump imposed tariffs of up to 25% on Chinese furniture products, which began in 2018 and have since increased to about 55%, with potential further increases for cabinets and vanities.
The proclamation provides some relief for countries engaged in tariff-reducing trade deals with the US, capping tariffs on wood products from Britain at 10% and from the European Union and Japan at 15%, aligning with base rates in existing agreements.
However, Trump’s statement did not reference his trade deal with Vietnam for a 20% tariff rate agreed in July, which remains undocumented.
In April, the Commerce Department’s national security investigation into US lumber imports faced opposition from the US Chamber of Commerce, which argued against restrictions on timber, lumber, and derivative imports, including wood pulp, paper, and cardboard.
“These imports pose no threat to national security,” the Chamber stated. “Tariffs on these goods will increase costs for US businesses and homebuilders, undermine the export success of the US paper industry, and reduce income in many communities.”
