Tariff and Trade Updates

The Hardwood Federation has shared the following policy alert regarding the tariff situation as of February 4, 2025:

A trade war with the United States’ North American neighbors has been put on hold until at least March 1, 2025. Monday negotiations between the U.S. and USMCA counterparts has led to a pause in plans to levy 25 percent tariffs on goods from Canada and Mexico. No deal with China has been reached.

On Saturday, President Trump carried through on his intentions to leverage tariffs as an economic weapon by signing executive orders imposing 25 percent tariffs on products from Canada and Mexico. An order was also signed to initiate a 10 percent tariff on goods from China. The action triggered a series of responses from the impacted counties and discussions between countries over the last two days. As of Tuesday morning, we know the following:

  • Mexico: Although Mexican President Claudia Sheinbaum immediately ordered tariff and non-tariff measures in retaliation to U.S. action, after Monday conversations between the two countries, including at least one between the two presidents, tariff actions on both sides will be paused for one month while discussions continue.
  • Canada: Similarly, tariffs on Canada have been delayed for until March 1, 2025, after a day of negotiations between the administration and their Canadian counterparts…and between Canadian Prime Minister Trudeau and Trump.
  • China: The president’s executive order imposing tariffs of 10 percent on Chinese goods imported to the U.S. went into effect last night as threatened. China has announced that 10-15 percent tariffs would be imposed on a wide range of U.S. goods in retaliation starting February 10 if no agreement is reached. This includes U.S. coal, crude oil, farm equipment, and trucks. No U.S. wood or wood products are impacted at this time.
  • Other Potential Action: Both China and Canada noted they will consider legal action either through the World Trade Organization or as a challenge through the U.S.-Mexico-Canada Agreement if the tariffs stand.

This is a very fluid situation, and we anticipate additional developments over the next days and weeks, including additional tariffs on products from the European Union and other trading partners. The Hardwood Federation team will keep you posted.

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