The Hardwood Federation produces a “D.C. Cheat Sheet” newsletter to keep the industry up-to-date on the latest news from Washington D.C. Check out the February 20th edition below and sign up to receive your copy.
Administration Takes Aim at Lumber Imports and Other Goods
On Wednesday, President Trump announced his intent to impose 25 percent product-specific tariffs on lumber imports in conjunction with the 25 percent tariffs announced on Tuesday impacting automobiles, pharmaceuticals, and computer chips. Not much detail is currently available although the president has said that auto, drug, and computer chip makers that operate facilities in the U.S. would be exempt from this latest round of tariffs, leaving the door open for similar treatment of lumber. A formal statement that could be released as soon as April 2. The Hardwood Federation will be reaching out to obtain more information about this latest development.
Mexico’s Economy Minister Goes to Washington
Mexico’s chief economic envoy is visiting Washington this week to discuss trade relations with Commerce Secretary Howard Lutnick. As reported earlier, the administration has temporarily lifted a blanket 25 percent tariff on goods from Mexico through March 1, a deadline no doubt adding urgency to Mexico’s desire to talk more about ways to further “integrate” the two economies. Mexico is still subject to product-specific tariffs of 25 percent on steel and aluminum, set to go into effect on March 12. Details related to any discussion items that Mexico might have to normalize trade relations are not known at this time.
House Passes Midnight Rules Relief Act
On February 12, the House approved the “Midnight Rules Relief Act” (H.R. 77) to dramatically expand Congress’s ability to roll back regulations approved by the prior administration. Currently, Congress may pass a Congressional Review Act (CRA) resolution that overturns on a case-by-case basis for regulations adopted in roughly the last six months of the previous president’s term. H.R. 77 would expand on this authority to apply to those regulations adopted during the previous year of a president’s final year in office and allow Congress to bundle many rules together and overturn them in a single vote. The final vote was 212-208. Rep. Henry Cuellar (D-TX) was the only democrat to support the measure.
Senate, House Lawmakers Meander Toward Budget, Tax Deal
Although Congress made progress last week on competing budget and tax proposals, a clear path forward continues to elude lawmakers. House Republicans, who are aiming to pass a single package that includes multiple GOP priorities, including tax breaks, have struggled to keep up with their Senate GOP colleagues who plan to move two separate budget bills, steering tax breaks into a second bill. Restoring key business tax benefits that have been allowed to lapse or begin phasing out, including 100 percent bonus depreciation and extending the 20 percent small business deduction, for example, are key objectives for the 119th Congress.
Moving through the process known as “budget reconciliation,” the procedure would allow a budget bill to pass the Senate with a simple majority vote. On February 13, the Senate took the lead when Budget Committee Chairman Lindsey Graham (R-SC) managed to pass his bill in committee, focusing on border security and energy. This preceded House action, where Speaker Johnson was able to pass his resolution through committee on February 14. The House version is a larger package that includes border security, energy as well as tax. House GOP leadership is also reaching out this week to undecided members of their party to attempt to gain the near unanimous GOP vote that could be necessary to pass the bill. Although it appears that the Senate might have the upper hand in crafting a final resolution on which both chambers must agree, Trump announced on Wednesday his support for the House version. Also, democrat plans to offer multiple amendments during upcoming debate on the Senate floor will further undermine Majority Leader John Thune’s (R-SD) momentum gained by his decision to move his package this week. The dynamics impacting the fate of budget and tax legislation remain fluid. The federation will keep you posted on developments.
Register Now for Fly-In 2025
Taxes. Trade. Tariff. Regulations. Federal policy impacting you and your business is currently being debated on Capitol Hill. Don’t depend on others to speak for you. Join the Hardwood Federation’s Fly-In to D.C. May 13-15 for your chance to make your voice heard.
We schedule your meetings based on where you live and work. You and a group of your peers will visit Congressional offices, share your business story and insight, and become an advocate for policies that support the U.S. hardwood industry.
Registration is now open. Register for the Fly-In, make hotel reservations, and review the action-packed agenda here. This is the year to make a difference. Register today!
Source: Hardwood Federation