The following update is courtesy of the American Hardwood Export Council (AHEC) and the National Hardwood Lumber Association (NHLA) as of April 11:
This morning, China’s Ministry of Finance matched the U.S.’s increased tariff with a 125 percent rate on American products, including hardwoods. This applies to shipments after April 10 arriving in China after May 13.
China’s statement made it clear: “Given that at the current tariff level, there is no market acceptance for U.S. goods exported to China. If the U.S. continues to impose tariffs on Chinese goods exported to the U.S., China will ignore it.”
Additional remarks from Chinese officials signaled the end of tariff hikes—but warned of non-tariff trade barriers if tensions escalate.
What this means for our industry:
- Exports to China have virtually stopped.
- The existing ban on U.S. logs remains in place.
- Even higher tariffs are unlikely, but access to the Chinese market will stay severely restricted.
The Hardwood Federation shared additional updates on tariffs and other D.C. matters as of April 10:
Tariff Turmoil Continues
The tariff rollercoaster continues as President Trump announced via social media yesterday that he was putting a 90-day pause on the country specific reciprocal tariffs announced last week on all U.S. trading partners with the exception of China, which will now face combined tariffs of 125 percent on all exports to the U.S. The global 10 percent tariff remains in place on all U.S. imports as do tariffs on steel, aluminum, and automobiles. The announcement seemed to catch many in the administration off guard, including U.S. Trade Representative Jamieson Greer who had testified before the House Ways and Means Committee earlier in the day.
Although the European Union approved 25 percent “trade countermeasures” on a slew of U.S. products, including all species of hardwood lumber, they also paused action this morning, indicating they welcome time to negotiate with the U.S. tariffs on Canada and Mexico (and Canadian retaliatory tariffs) are unchanged, including the exemption for USMCA-compliant goods which seems to include wood and wood products. There were reports yesterday that negotiations with the U.S. would begin after the Canadian federal elections on April 28th.
Forestry Workforce Bill Gets New Life
This week, Senators Jim Risch (R-ID) and Angus King (I-ME) announced that they are reintroducing the Jobs in the Woods Act (JWA). This legislation, which was pending in the last Congress, would stand up forestry and forest products industry-specific job training programs. It is modeled after a successful program developed by the University of Wisconsin-Stevens Point. Recruiting qualified workers into our sector continues to be a challenge and enactment of JWA would be a critical step in addressing this issue. The Hardwood Federation will be looking to build out support for this bill on a bicameral, bipartisan basis with the goal of having its provisions folded into a Farm Bill reauthorization measure later this year or next. Rep. Marie Gluesenkamp Perez (D-WA) is the lead in the House, and we are currently looking for a Republican co-lead for this important bill. Rep. Lori Chavez-Deremer was the GOP cosponsor last Congress, but she is now the Secretary of Labor.
White Oak Restoration Funds Proposed
Last week, Rep. Andy Barr (R-KY) reintroduced the White Oak Resilience Act (H.R. 2405). The measure empowers the Department of the Interior and the U.S. Forest Service to lead white oak restoration projects and establishes a White Oak Restoration Fund to support public-private partnerships focused on regeneration, reforestation and long-term sustainability of this critical hardwood species that is the life blood of the bourbon industry in Rep. Barr’s home state. The legislation enjoys bipartisan support and passed the House last Congress.
Register Now for Fly-In 2025
Taxes. Trade. Tariff. Regulations. Federal policy impacting you and your business is currently being debated on Capitol Hill. 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.
Register for the Fly-In, make hotel reservations, and review the action-packed agenda here.