Source: The Hardwood Federation
The global trading system has been upended since President Trump announced the imposition of worldwide tariffs on Wednesday, April 2. In response, China has responded by levying a 34 percent tariff on all U.S. goods, Canada issued additional tariffs on U.S. autos, and the E.U. is considering action. Other countries, including Vietnam have reached out in hopes of negotiating down the tariffs. Below is an overview of what tariffs are in place, how they are being applied, and how the Hardwood Federation is taking action.
Hardwood Federation Action: The Hardwood Federation is working with our board of directors to develop a statement that will be shared with our association members, industry companies, and all members of Congress. Our tariff relief proposal will also be shared.
Grassroots outreach opportunities will be provided to companies and individuals in the industry to facilitate their direct communications with their federally elected officials. The Hardwood Federation has heard from many of our hardwood leaders about the swift impact the tariffs imposed by the Trump Administration have had on their operations and business. Now it’s time to tell Congress.
You can send an email directly to your Senator and your member of Congress by clicking here. Draft language is already loaded but make it more impactful by adding your personal thoughts and experience. An option to call is also available.
It is imperative that those on Capitol Hill hear from you today. Feel free to share this message with your friends and family so they too can weigh in. The more policy makers hear from our industry, the more pressure they will feel to take action on our behalf.
What’s going on: The “Reciprocal Tariff” EO uses the International Emergency Economic Powers Act, citing “a lack of reciprocity in our bilateral trade relationships, disparate tariff rates and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption, as indicated by large and persistent annual U.S. goods trade deficits.”
Russia, North Korea, and Cuba were not included in the newly announced tariffs because they are already addressed separately in the tariff schedule.
Global 10 percent baseline: A 10 percent tariff will apply to all products imported from all countries, with the following exceptions:
Effective April 5, 2025, at 12:01 a.m. EDT: The 10 percent tariff applies to all goods entered into or removed from a warehouse for consumption on or after 12:01 a.m. EDT on April 5—except for those products loaded onto a vessel at the port of loading and in transit on the final mode of transportation prior to 12:01 a.m. EDT on April 5.
Higher tariffs to nearly 60 nations: Annex I of the EO lists nearly 60 countries that have trade deficits with the U.S. and will be assessed country-specific ad valorem rates of duty higher than 10 percent.
How the administration arrived at the rates: In this chart, the administration calculates a tariff rate it claims 185 countries are charging the U.S. That rate is determined by dividing the U.S. trade deficit with that country by the value of U.S. imports from that country in 2024. The new tariff the U.S. will charge is half of the resulting percentage, or a flat 10 percent rate (whichever is higher).
Effective April 9, 2025, at 12:01 a.m. EDT: Country-specific tariffs will apply to all goods entered into or withdrawn from a warehouse for consumption on or after 12:01 a.m. EDT on April 9, except for goods loaded onto a vessel at the port of loading and in transit on the final mode of transportation before 12:01 a.m. EDT on April 9.
Canada and Mexico: Goods that qualify for and claim preferential treatment under the U.S.–Mexico–Canada Agreement may continue to enter the U.S. on these preferential terms, except products subject to Section 232 tariffs.
For products that cannot claim USMCA preferential treatment, the 25 percent IEEPA duty rates as established under the Feb. 1 EOs will apply. A 10 percent tariff continues to apply to energy, energy resources and potash from Canada.
If the original IEEPA EOs on Canada and Mexico imposing a 25 percent rate are terminated or suspended, the rate on USMCA nonqualifying imports will be reduced to a 12 percent tariff rate, and energy, energy resources and potash will be duty-free. Components of an article substantially finished in the U.S. would also be duty-free.
Where the tariffs stack: In general, the new tariffs are in addition to existing duties, fees and taxes, including tariffs on Chinese products already subject to Section 301 tariffs, anti-dumping and countervailing duties and 20 percent IEEPA tariffs.
They may also stack onto Most-Favored Nation duties. (An upcoming Federal Register notice from U.S. Customs and Border Protection will clarify.)
Where they don’t stack: New tariffs under the April 2 EO will not apply to goods enumerated in Annex II, including:
- Energy and Energy Products
- Certain critical minerals
- Products already subject to Section 232 tariffs, including steel and aluminum derivatives and vehicles and vehicle parts
- Products subject to future Section 232 tariffs, including copper and semiconductors and lumber.
Subject to change: The tariffs are subject to change, the EO notes. They may be increased if the overall U.S. trade deficit rises, or if trading partners expand “threatening” nonreciprocal trade arrangements or take retaliatory actions. They may be reduced in the event a partner “take[s] significant steps to remedy nonreciprocal trade arrangements.”
The Hardwood Federation will continue to provide updates as the situation develops.
Do you want to share your thoughts in person? Come to the Fly-In!
Registration is now open for the Hardwood Federation Fly-In, May 13-15, 2025. Register for the Fly-In, make hotel reservations, and review the action-packed agenda here. This is the year to make a difference. Our special rate at the host hotel expires on April 22, 2025, so register today.