Adjusting Imports of Timber, Lumber, and Their Derivative Products Into the United States
Proclamation 10976 uses the President’s section 232 authority to adjust imports of timber, lumber, and their derivative wood products in order to address a perceived national-security threat posed by foreign wood product imports. The plan imposes tariff rates on specific wood-product groups and outlines a framework to expand coverage over time, coordinate with key allies, and pursue negotiations with trading partners to reduce the security risk. The goal is to protect and strengthen domestic wood production, stabilize supply chains (including critical defense-related needs), create jobs, and boost industrial modernization by encouraging domestic investment. Key design features include a staged tariff schedule (initial rates apply starting October 14, 2025, with higher rates kicking in January 1, 2026 for some categories), targeted exemptions or caps for certain allied countries, and mechanisms to extend coverage to additional wood products or address undervaluation. The proclamation directs agencies to implement the plan, conduct HTS (tariff schedule) adjustments as needed, and continue negotiations with foreign partners through the Trade Representative. It also preserves traditional measures like drawback (duty refunds) and strengthens enforcement and monitoring of imports.
Key Points
- 1Tariff Schedule on Wood Products (initials): Softwood timber and lumber at 10% ad valorem; upholstered wooden products at 25%; kitchen cabinets and vanities at 25%. These rates apply to goods entered for consumption after October 14, 2025.
- 2Time-Phased Increases: Starting January 1, 2026, the rates for upholstered wooden products rise to 30% and for kitchen cabinets/vanities rise to 50%; softwood timber and lumber remain at 10% unless adjusted later under the plan.
- 3Allied Partners and Caps: Tariffs for the United Kingdom shall not exceed 10%; tariffs for the European Union and Japan when combined with the applicable base rate may not exceed 15% (the EU/Japan cap is tied to negotiated agreements under the plan).
- 4Policy and Legal Framework: These tariffs are not governed by certain Executive Orders (14257, 14323, 14329) and can be adjusted through HTS modifications, guidance, and regulations. The plan also contemplates removing certain tariff provisions from prior EO frameworks for wood products, while preserving other duties.
- 5Negotiations and Monitoring: The Trade Representative, in consultation with the Secretary of Commerce, must pursue and report on agreements addressing the national-security risk, with updates due before January 1, 2026, and at least every 180 days thereafter. The Secretary and U.S. Trade Representative will monitor imports, consider adding more wood products, and assess undervaluation risks.
- 6Anti-Circumvention and Trade Administration: The proclamation includes measures to prevent circumvention (e.g., importers trying to bypass tariffs) and directs CBP to administer the tariffs. It also allows for drawback (duty refunds) and directs HTS adjustments as needed.