The following update is courtesy of the Hardwood Federation:
Last night President Trump issued Further Modifying the Reciprocal Tariff Rates, an Executive Order (E.O.) which modifies the April 2, 2025, order setting global tariff rates under the authority of the International Economic Emergency Powers Act. A list of tariff rates announced (and compared to April 2) may be accessed here. (Courtesy of NAM)
Tariff rates go into effect after 12:01 a.m. EST on August 8, 2025. There is an “on the water” exception for goods in the final stages of transport as long as they enter before October 5, 2025. Note this is for goods coming into the U.S. Exported U.S. goods, including hardwood logs, lumber, and products may face different terms set by trading partners.
If Customs and Border Patrol officials determine a good to be transshipped from a country of origin through a lower-tariff county to avoid higher duties, an additional rate of 40% will be assessed for that product. The E.O. calls for a list of known countries and facilities participating in circumvention schemes to be published every six months.
China, Mexico, and Canada negotiations are being conducted on a different track from much of the world. As of last night, the status of these countries is as follows:
China: The current 90 day pause expires August 12 unless an extension or a new agreement is announced.
Mexico: Following a call with Mexican President Sheinbaum yesterday, Mexico’s current 25% “fentanyl” tariff, exceptions for USMCA-qualifying goods, and any additional Section 232 tariffs (steel, aluminum, etc.) will be extended for at least 90 days while negotiations continue.
Canada: The president penalized Canada for retaliatory actions and limited progress on eliminating fentanyl entry to the U.S. by raising the tariffs on Canadian goods from 25% to 35%. USMCA-qualifying goods remain exempt. Transshipped goods will be subject to a 40% tariff. The White issued a fact sheet with further details.
The U.S. has reached trade deals with the following countries (Links below to White House Fact Sheets where available:
- Japan – Tariff Rate 15%
- European Union – Tariff Rate 15%
- United Kingdom – Tariff Rate 10%
- Philippines– Tariff Rate 19%
- Indonesia – Tariff Rate 19%
- Vietnam – Tariff Rate 20%; 40% on transshipment
- South Korea – Tariff Rate 15%
- Thailand and Cambodia – Tariff Rate 19%
Tariff rates for the above countries are not official and in place until formally announced and memorialized by Presidential Executive Order. Higher rates may apply until such an announcement is made.
The E.O. indicates that negotiations with trading partners will continue with the goal of reaching additional agreements. The E.O. also indicates that should administration officials determine that countries are not abiding by the terms of reached agreements, tariff increases could be imposed, signaling that uncertainty for many sectors, including the hardwood industry, will continue.
The Hardwood Federation will continue to monitor administration actions and report to the industry. The federation team has a meeting with White House officials on Monday to discuss potential impacts of continuing uncertainty for exported products.