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The Trump administration released an executive order last night imposing Section 232 tariffs of 10–25% on certain softwood lumber and timber products.

• The tariff will apply to goods entered for consumption on or after Oct. 14.

Rationale: A Commerce Department report to the president found that “present quantities and circumstances of wood product imports are resulting in persistent threats of closures of wood mills and disruptions of wood product supply chains” and that “wood production in the U.S. remains underdeveloped.”

• The EO charges that foreign subsidies and unfair trade practices have eroded U.S. competitiveness and disincentivized investment in domestic production.

Scope and rates: HS Chapter 44 products listed in the EO’s Lumber and Timber Annex  are subject to a 10% ad valorem tariff, except for the following:

• Certain upholstered wooden products in Annex I are subject to a 25% tariff. Effective Jan. 1, 2026, the tariff will increase to 30%.
• Completed kitchen cabinets and vanities and their parts in Annex I are subject to a 25% tariff. Effective Jan. 1, 2026, the tariff will increase to 50%.

Hardwood products: Hardwood products are not included. The EO, however, directs Commerce to report to the president by Oct. 1, 2026, on the need for tariffs on such products.

No stacking with IEEPA tariffs: If a Section 232 tariff applies to wood product imports, an International Emergency Economic Powers Act tariff, the Brazil tariff, and the secondary tariffs on India for trade in oil with Russia will not apply. If any wood product is subject to a Section 232 tariff on autos or auto parts, that tariff prevails, and the wood product tariff does not apply. Duty drawback remains available.

No USMCA exception: Wood products of Canada and Mexico subject to IEEPA fentanyl tariffs will pay timber/lumber tariffs in lieu of the IEEPA tariffs, regardless of whether those products are USMCA compliant.

Undervaluation: The EO states “where there is a threat of undervaluation, it may be appropriate for specific, compound or mixed tariffs to be imposed.”

• The EO directs Commerce to establish a process for determining whether there is a threat of undervaluation, presumably for the purpose of adjusting the applicable tariff rate in such instances to achieve an effective rate of 10% or 25%.

U.K., EU, Japan preference: According to the terms of the May 8 U.S.–U.K. deal, the Section 232 tariff on imports of U.K. wood products will not exceed 10%. The EU and Japan deals limit the application of Section 232 tariffs on wood products to 15% inclusive of the most-favored-nation rate.

Other deals: The EO allows for the U.S. Trade Representative in consultation with Commerce to pursue the negotiation of agreements “to address the threatened impairment of the national security with respect to wood products.”

Inclusion process established: As has become routine, the president directed Commerce to establish a process for adding products, including derivative products, subject to Section 232 tariffs.