President Trump set tariffs on imports of timber, lumber, wood products

President Donald Trump signed a Proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose tariffs on imports of timber, lumber, and their derivative products. The Proclamation imposes a 10% global tariff on imports of softwood lumber. The Proclamation imposes a 25% global tariff on certain upholstered furniture, which will increase to 30% on January 1. The Proclamation imposes a 25% global tariff on kitchen cabinets and vanities, which will increase to 50% on January 1. Trading partners who negotiate with the United States to address the threat of wood imports to the national security of the United States may be able to secure an alternative to the pending tariff increases. The Section 232 tariff on subject wood imports from the United Kingdom will not exceed 10%. The combined Section 232 tariff and most-favored nation tariff on subject wood imports from the European Union and Japan will not exceed 15%. Products that are not subject to these Section 232 tariffs will generally be subject instead to reciprocal tariffs. Companies in the space include International Paper (IP), Boise Cascade (BCC), Weyerhaeuser (WY), West Fraser Timber (WFG), UFP Industries (UFPI), Home Depot (HD), and Lowe’s (LOW).