To keep you informed about recent developments in international trade policy, we share the following update related to tariffs on wood, softwood lumber, and derivative products in the United States—information of particular interest to companies with foreign trade operations:
Background:
On September 29, 2025, the President of the United States, Donald J. Trump, issued a Proclamation which, pursuant to Section 232 of the Trade Expansion Act of 1962, grants the U.S. President authority to take necessary decisions and measures to defend the Nation’s economy through negotiations and trade agreements, determines that imports of wood products are being made in such quantities and under such circumstances as to threaten to impair national security.
Based on the Department of Commerce report submitted on July 1, 2025, the measure seeks to adjust imports to strengthen domestic industrial capacity, supply chains, and the resilience of critical sectors (defense, energy, transportation, communications, and manufacturing).
Key points to consider:
1) Scope (goods covered)
- Wood and softwood lumber – Chapter 44.
- Upholstered furniture with wooden frames and kitchen cabinets/“vanities” and parts thereof – Chapter 94.
2) Rates and effective dates
- Effective October 14, 2025:
- Wood/softwood lumber: 10% ad valorem.
- Upholstered products with wooden frames: 25% ad valorem.
- Kitchen cabinets/vanities and parts thereof: 25% ad valorem.
- Effective January 1, 2026 (if no country-specific agreement is reached):
- Upholstered products with wooden frames: 30%.
- Kitchen cabinets/vanities and parts thereof: 50%
Tariffs under Section 232 are in addition to other applicable duties/taxes, except for the exceptions expressly provided in the Proclamation.
3) Country treatment:
- United Kingdom: the tariff under Section 232 shall not exceed 10%.
- European Union and Japan: the tariff shall not exceed 15% for products qualifying as originating.
4) Interaction with other measures
If a wood product is also subject to tariffs under Section 232 and Proclamation 10908, relating to the adjustment of imports of automobiles and automobile parts into the United States, only the terms and tariffs of Proclamation 10908 apply.
If a wood product is subject to the tariffs of this Proclamation as well as reciprocal tariffs, or tariffs on certain imported articles announced in Executive Order 14289 of April 29, 2025, the tariffs of this wood Proclamation apply.
5) Drawback applies
6) There is no automatic exemption due to preferential origin. Section 232 tariffs are charged in addition to the base rate. If your product qualifies for 0% under an FTA, the 0% rate applies to the base rate; however, the percentage established under Section 232 is still added.
7) Monitoring, undervaluation, and potential expansions
The Secretary of Commerce will continue monitoring imports of wood products and report to the President if additional actions under Section 232 are required; no later than October 1, 2026, the Secretary will submit a report on hardwood and sawn lumber so that additional tariffs may be considered (including a tiered scheme) or extended to derivatives, or to determine whether the current increase is no longer necessary. In parallel, negotiations with countries will continue or begin to address the national security threat, keeping the President informed with at least one update before January 1, 2026, and another within 180 days of the Proclamation.
Reference: Annex of wood products and derivatives subject to Section 232 tariffs.
J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics contained in this agreement.
If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.
