The Hardwood Federation has shared the following policy alert regarding the tariff situation as of February 11, 2025:
President Trump continued to act upon his promises to use tariffs on global imports to the U.S. as his premier economic development tool on Monday…with more to come. The situation is rapidly evolving and becoming more complex each day. The Hardwood Federation is continuing to monitor and evaluate impacts on the hardwood industry. We are also in daily contact with Congress, reminding them of the severe impact these actions could have…and what relief measures the industry will need if retaliatory action is taken. What we know today:
Aluminum and Steel Tariffs: The administration moved forward Monday evening with an announcement imposing a 25 percent tariff on global steel and aluminum imports. The tariffs will go into effect at 12:01 a.m. on March 12. If all this sounds familiar, it’s because Trump has effectively resorted to his 2018 playbook, when he imposed similar sanctions on steel and aluminum imports, invoking emergency powers under the Trade Expansion Act. The key difference this time is that this round of tariffs will include finished metal products, rather than raw steelmaking and primary aluminum production.
Canada and Mexico: Canada and Mexico are subject to the product-specific tariffs on steel and aluminum that begin on March 12. Imposition of the broader 25 percent tariffs on all imports from both countries continue to be on hold until March 1. Canada and Mexico are among the U.S.’s top suppliers of steel and aluminum and have each promised retaliatory action should tariffs of any type move forward; Canada’s retaliatory list includes 25 percent tariffs on wood and products from the U.S. including hardwoods.
China: 10 percent tariffs on Chinese imports to the U.S. went into effect on February 1, prompting retaliatory tariffs on a limited set of products from China, which went into effect on February 10. China has also initiated a lawsuit against the U.S. in the World Trade Organization filed on February 5. An anticipated phone call between Trump and Chinese President Xi to discuss the trade situation has not yet taken place.
European Union: The E.U. also seems to be on the administration’s radar, although no specific actions have been laid out.
Reciprocal Tariffs: The president has also made statements indicating his administration will impose reciprocal measures on all countries that currently impose tariffs and value added taxes on U.S. goods shipped abroad. This action could occur as early as today or Wednesday. Currently tariffs on U.S. hardwood exports, if they exist at all, tend to be low, but retaliatory actions could impact the U.S. hardwoods going forward.
Industry Impacts: Although there are examples where tariffs do help level the playing field for U.S. manufacturing, including for downstream hardwood products like hardwood plywood, and kitchen cabinets, a significant percentage of the industry continues to be extremely concerned about the potential impacts of retaliatory tariffs on our exports, particularly those headed to our major trading partners, including China, Canada, and Mexico. The impacts of such tariffs on U.S. lumber in 2019-2020 had a devastating impact on the industry. The broader business sector, beyond hardwood companies, have concerns about the impact of tariffs on the domestic prices of industrial and agricultural goods, parts, and transportation equipment.