Trump imposes 10 % tariff on wood as cabinet and furniture duties are delayed
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President Trump announced a new 10 percent tariff on wood imports while delaying previously planned 25 percent duties on kitchen cabinets, bathroom vanities and upholstered furniture until October 14. The administration signaled that without new trade agreements, those tariffs will rise significantly by the start of 2026. Rates for kitchen cabinets and bathroom vanities could increase to 50 percent, while upholstered furniture may see duties raised to 30 percent.
Tariff structure and trade preferences
The measure offers selective relief to nations with standing trade agreements. Imports from the United Kingdom will face no more than 10 percent, and goods from the European Union and Japan will be capped at 15 percent. Nations without deals in place are subject to full tariff enforcement, with Canada especially affected.
Canada, already facing anti-dumping duties near 35 percent on softwood lumber, is expected to be hit hardest. The Canadian government has committed to offering 1.2 billion Canadian dollars in aid to its lumber producers in an attempt to offset the disruption.
The White House justified the tariffs on national security grounds. In its proclamation, it emphasized the role of domestic wood manufacturing in supporting critical infrastructure, industrial resilience and economic stability. This legal framing is consistent with earlier actions under Section 232 of the Trade Expansion Act, although challenges continue to work their way through the courts regarding the extent of executive authority in applying these measures.
Construction sector braces for impact
For the construction industry, the consequences are immediate. Builders, developers and contractors already dealing with tight labor markets and elevated interest rates now face the risk of volatile material costs. Lumber and wood-based products, including engineered wood and plywood, are key inputs in residential and commercial construction alike.
Market analysts anticipate that the new tariffs will increase the cost of a single-family home by as much as seven thousand to ten thousand US dollars. That could push many planned housing projects out of feasibility, particularly in lower-margin suburban or affordable housing developments.
The National Association of Home Builders has voiced concern that rising input costs will erode housing affordability and discourage new construction. Developers are expected to either delay projects, reduce scope or absorb smaller profits to remain competitive.
The knock-on effects extend further. Suppliers could see inconsistencies in order volumes. Subcontractors and framers may face difficulties securing fixed-rate agreements. Developers and general contractors are increasingly requesting price escalation clauses in contracts to shield themselves from cost swings over multi-month builds.
Suppliers and manufacturers rethink strategies
To mitigate risk, some construction firms may turn to domestic lumber sources, but capacity is limited. US mills that shut down during earlier low-demand periods are not positioned to quickly scale up. This tightens availability and drives prices higher across the board.
Furniture and cabinet manufacturers relying on international supply chains are also exposed. Many of these businesses operate on thin margins and will find it difficult to absorb both rising input costs and new duties. In some cases, product redesign may offer a partial solution, replacing wood elements with metal, plastic or engineered alternatives. However, material substitution is not always practical or acceptable from a performance or design perspective.
Some builders and manufacturers may shift sourcing toward countries with lower tariffs or active trade agreements. But these changes take time and carry uncertainty, particularly in an election period when trade policy remains fluid. In certain cases, producers may pass costs directly to consumers, potentially contributing to inflationary pressures in the broader economy.
Outlook for global trade relations
The tariffs are likely to reignite friction between the United States and its trade partners. Canada, which supplies most of the softwood lumber imported into the US, may explore retaliatory measures or file new disputes through international arbitration forums. With lumber historically being a contentious point in cross-border trade, this latest round could deepen an already strained relationship.
Countries in Southeast Asia and Latin America that export finished furniture to the US market face a less predictable outlook. Those without formal agreements risk being caught in the crossfire as the administration continues to leverage tariffs as a negotiating tool. Manufacturers in Vietnam, Mexico and Indonesia are especially exposed, and any disruption in their trade volume could redirect orders back to more expensive domestic producers.
In the background, industry lobby groups such as the US Chamber of Commerce have continued to oppose tariffs framed under national security grounds. They argue that such actions create more risk than resilience and that protectionist policies ultimately burden the industries they are intended to support.
Final thought
Construction firms and manufacturers now face a landscape shaped by unpredictable tariffs and evolving trade dynamics. The path forward will require flexibility, cost discipline and faster sourcing pivots.
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