Trump Imposes 10% Lumber Tariffs and 25% Wood-Products Levy to Strengthen US Industry

Main Pointers
1) Tariffs on imports: 10% on softwood lumber + 25% on cabinets, vanities and upholstered wood products; effective starting Oct. 14, with some increases set for Jan. 1.
2) Legal framework and scope: Tariffs enacted under Section 232 of the Trade Expansion Act to bolster supply chains and jobs; rates vary for allied countries, with UK capped at 10% and the EU/Japan at 15%.
3) Industry impact and reactions: Potential gains for U.S. furniture and wood-product makers, but concerns persist about higher construction costs for builders and retailers; leaders in the sector urge caution while lawmakers weigh the broader trade implications.

President Donald Trump on Monday announced 10% tariffs on imports of softwood timber and lumber, and 25% levies on kitchen cabinets, vanities and upholstered wood products, in a bid to shore up U.S. manufacturing. The duties are set to apply from Oct. 14, with some increases scheduled to take effect from Jan. 1, following a Commerce Department investigation that began in March into imports of lumber, timber and derivative products such as cabinets and furniture.

Trump argued the measures will strengthen supply chains, bolster industrial resilience, create high-quality jobs and increase domestic capacity utilization for wood products. The levies come under Section 232 of the Trade Expansion Act, which authorizes tariffs on goods for national security reasons. They are distinct from the reciprocal tariffs previously imposed to address trade imbalances and to prompt other nations to lift barriers on American goods. Officials say the new regime could prove more legally durable as the Supreme Court weighs challenges to the reciprocal tariffs and the administration builds an alternative framework should those duties be struck down.

Countries with existing trade deals will face lower rates under the president’s directive. Tariffs on wood products from the United Kingdom will not exceed 10%, while those on the European Union and Japan are effectively capped at 15%. Some Republican lawmakers have pressed Trump to use tariffs on furniture, cabinets and other wood products to aid home-state industries, with suggestions of higher duties in the past. North Carolina furniture makers have been highlighted by supporters as a potential beneficiary amid competition from subsidized foreign producers, though critics warn of broader price pressure for households.

Industry groups and retailers warn the new duties could raise costs for home builders and consumers. Among retailers that could be affected are Wayfair Inc., Arhaus Inc., Williams-Sonoma Inc. and RH. Domestic manufacturers such as Ethan Allen and La-Z-Boy Inc. could gain from a more favorable competitive landscape, provided supply chains can adapt. The home furnishings sector has faced a multi-year downturn, and some players warned earlier that tariffs on wood products would add pressure to an industry already recalibrating post-recession. Tariffs on timber are part of a broader wave of sectoral protections, alongside existing duties on steel and aluminum, with additional Section 232 reviews underway for solar panels, aircraft, semiconductors and critical minerals. In its latest framing, the White House says the United States has been a net importer of lumber since 2016, with foreign subsidies and trade practices cited as harming domestic producers.

Analysts say the tariff move signals Washington’s willingness to use import taxes to rebuild manufacturing capacity, but the ultimate impact on construction costs, product availability and consumer prices remains uncertain as companies adjust supply chains and sourcing strategies.