New Tariffs on Lumber, Wood Products

Action: On September 29, the President issued a Proclamation establishing new tariffs of 10% on imports of softwood lumber, 25% on certain upholstered furniture (which will increase to 30% on January 1, 2026), and 25% on kitchen cabinets and vanities (which will increase to 50% on January 1, 2026). The Proclamation states that the United Kingdom, European Union, and Japan will be subject to lower rates reflecting the trade deals they have negotiated with the US. The tariffs took effect on October 14.

Trusted Insights for What's Ahead^®

The Proclamation cites as the justification for the tariffs an investigation – originally initiated in March – conducted under section 232 of the Trade Expansion Act of 1962 finding that the quantity and circumstances of imports of the affected products threaten US national security.
Section 232 permits the President to impose tariffs on particular goods if they are found to threaten national security. As a result, these tariffs may be more likely to survive legal scrutiny than tariffs the President imposed under the International Emergency Economic Powers Act (IEEPA), which require a national emergency involving an “unusual and extraordinary threat” and have been challenged in lawsuits that will soon be considered by the US Supreme Court.
Importantly, products tariffed under this Proclamation generally will not be subject to the reciprocal tariff rates imposed by previous directives (except for those also covered by Proclamation 10908 dealing with automobiles and automobile parts), potentially lowering the tariff burden for certain products depending on their national origin.
The tariffs may raise costs for certain industries, particularly home construction. However, some sectors – including domestic cabinet manufacturers – celebrated the announcement.
The US imports about one-third of the lumber it consumes and about 85% of lumber imports come from Canada. Vietnam, China, Mexico, and Canada are also significant sources of US imported furniture. The Administration may seek to use the tariffs as a negotiating tool as it pursues trade deals with these countries.

New Tariffs on Lumber, Wood Products

October 16, 2025

Trusted Insights for What's Ahead^®

The Proclamation cites as the justification for the tariffs an investigation – originally initiated in March – conducted under section 232 of the Trade Expansion Act of 1962 finding that the quantity and circumstances of imports of the affected products threaten US national security.

Section 232 permits the President to impose tariffs on particular goods if they are found to threaten national security. As a result, these tariffs may be more likely to survive legal scrutiny than tariffs the President imposed under the International Emergency Economic Powers Act (IEEPA), which require a national emergency involving an “unusual and extraordinary threat” and have been challenged in lawsuits that will soon be considered by the US Supreme Court.

Importantly, products tariffed under this Proclamation generally will not be subject to the reciprocal tariff rates imposed by previous directives (except for those also covered by Proclamation 10908 dealing with automobiles and automobile parts), potentially lowering the tariff burden for certain products depending on their national origin.

The tariffs may raise costs for certain industries, particularly home construction. However, some sectors – including domestic cabinet manufacturers – celebrated the announcement.

The US imports about one-third of the lumber it consumes and about 85% of lumber imports come from Canada. Vietnam, China, Mexico, and Canada are also significant sources of US imported furniture. The Administration may seek to use the tariffs as a negotiating tool as it pursues trade deals with these countries.

CED Newsletters & Policy Alerts

Trusted Insights for What's Ahead^®