This Monday, a Presidential Timber/Lumber Proclamation announced new U.S. duties on certain wood products, completing an investigation under Section 232 of the Trade Expansion Act of 1962 that was formally initiated in March. The Proclamation establishes different duty rates for different wood product groups beginning on October 14, 2025, with softwood lumber imports subject to an additional 10% tariff, and upholstered wooden products, kitchen cabinets and vanities, and parts of kitchen cabinets and vanities subject to an additional 25% tariff. In addition, this action lays the groundwork for future proceedings to refine and possibly add to the duties through derivative product coverage.
New Duties on Lumber and Its Derivatives
The Timber/Lumber Proclamation establishes the framework for the application of duties on wood products arising out of the Section 232 undertaken by the U.S. Department of Commerce at the President’s request. At the outset, the scope of product coverage is noteworthy. Whereas the underlying Section 232 investigation was characterized as broadly considering “timber, lumber, and their derivative products,” only three groups of imported products are subject to tariffs pursuant to this Proclamation:
- Softwood lumber products that are classified under HTSUS provisions 4403.11.00, 4403.21.01, 4403.22.01, 4403.23.01, 4403.24.01, 4403.25.01, 4403.26.01, 4403.99.01, 4406.11.00, 4406.91.00, 4407.11.00, 4407.12.00, 4407.13.00, 4407.14.00, or 4407.19.00 will be subject to an additional 10 percent ad valorem duty rate;
- All upholstered wooden furniture products, such as couches, sofas, and chairs, that are classified under HTSUS provisions 9401.61.4011, 9401.61.4031, 9401.61.6011, or 9401.61.6031 will be subject to an additional 25 percent ad valorem duty rate; and
- Completed wooden kitchen cabinets and vanities, as well as parts of wooden kitchen cabinets or vanities, that are classified under HTSUS provisions 9403.40.9060, 9403.60.8093, or 9403.91.0080 will be subject to an additional 25 percent ad valorem duty rate. However, products other than completed wooden kitchen cabinets or vanities or parts of wooden kitchen cabinets or vanities classified under the three subheadings listed above are not subject to additional Section 232 wood product tariffs.
The tariffs are scheduled to take effect beginning with entries on October 14, 2025. Further description of each affected product category can be found in the Annex to the Proclamation which contains updated notes to the Harmonized Tariff Schedule of the United States (HTSUS).
In addition, the Proclamation provides that the tariffs on the two derivative product groups will increase beginning on January 1, 2026, as described below:
- The additional tariff applicable to certain upholstered wooden products will increase to a 30 percent ad valorem duty rate; and
- The additional tariff applicable to kitchen cabinets and vanities, as well as parts imported for use therein, will increase to a 50 percent ad valorem duty rate.
Antidumping and Countervailing Duties Continue to Apply
The implementing language in the HTSUS provides that all antidumping and countervailing duties, if any, shall continue to apply in addition to the Section 232 duties applicable to the three product categories described above. This is particularly important for any imports of softwood lumber from Canada and kitchen cabinets and furniture from China as well as other country sources.
Trade Deals Impact Tariff Terms
Exceptions to the newly announced tariff rates have been created for some (not all) trading partners with which the United States has announced a “trade and security framework agreement.” Specifically, the Section 232 tariff applicable to wood products of the United Kingdom shall not exceed 10 percent. Similarly, the Section 232 tariff applicable to wood products of the European Union and Japan shall not result in a tariff that, when added to the applicable Column 1 Duty Rate in the HTSUS, exceeds 15 percent. Although the Proclamation uses the phrase “products from,” as opposed to the more common customs term of art “products of,” the implementing HTSUS language characterizes the exceptions as applicable to “products of” the three trading partners. In practical terms, for some countries with which the U.S. has concluded a “trade and security framework agreement,” there will be some de-stacking of tariffs.
The Proclamation also contemplates further USTR-led dealmaking with other countries to avoid the increases planned for 2026. Indeed, USTR is required to pursue such negotiations. Although reduction in the already-announced rates is not expressly discussed, nothing would preclude that result. Updates on these negotiations are scheduled for January 1, 2026, and March 28, 2026, giving trading partners a sense of the target timeline.
Interaction with Other Tariff Regimes
Products subject to the Timber/Lumber Proclamation and associated tariffs will not be subject to reciprocal tariffs or “trafficking” tariffs put in place pursuant to the International Emergency Economic Powers Act. Also, starting October 14, 2025, most Chapter 44 subheadings that have thus far been excluded from reciprocal tariff coverage will be removed from the existing list of reciprocal tariff exclusions. The list of specific subheadings to be made subject to reciprocal tariffs appears in Section A.6.iii of the Annex to the Proclamation.
The only other Section 232 tariff regime addressed by the Proclamation is the regime applicable to automobiles and automobile parts. The Proclamation provides that articles subject to Section 232 tariffs on automobiles and automobile parts will not incur tariffs pursuant to the wood products Section 232 tariff regime. Although none of the HTSUS subheadings associated with the three product categories subject to Section 232 wood product tariffs presently appears on the list of HTSUS subheadings subject to Section 232 automobile tariffs (HTSUS Ch. 99, Subch. III, Note 33), the first window for submitting petitions to bring additional products within the ambit of Section 232 automobile tariffs has opened. The list of products subject to Section 232 automobile tariffs may expand in connection with this “inclusions” process.
Operational Considerations
In contrast to the Section 232 duties on certain copper products announced in July and the Section 232 duties on automobiles and automobile parts announced in March, Monday’s Proclamation provides that duty drawback shall be available for the Section 232 wood products tariffs.
Consistent with other Section 232 tariff regimes, products subject to the Section 232 wood products tariffs must enter foreign trade zones as “domestic status” (if eligible) or “privileged foreign status.”
More to Come Including Hardwood Coverage, Customs Valuation Enforcement, and Inclusions
The Proclamation contains several distinctive future-oriented provisions. First, it indicates that phased tariffs on hardwood timber or lumber were recommended by Commerce’s Section 232 investigation report and instructs Commerce to continue monitoring such imports. A formal update is requested by October 1, 2026, at which point the President will reconsider whether to impose tariffs on such products and/or derivatives of those products.
Second, the Proclamation introduces a novel instruction concerning the potential for tariff avoidance through undervaluation. Commerce is instructed to “establish a process for determining whether there is a threat of undervaluation of wood product imports” subject to the wood product Section 232 tariffs. If so, the Proclamation further authorizes Commerce to “impose specific, compound, or mixed tariffs at a rate that he determines to correspond approximately to the ad valorem duty rate otherwise in effect under section 232 for the same class of articles.” Per the Proclamation, any such modifications are to be noticed in the Federal Register.
Third, as has been done for steel, aluminum, and automobiles, and as is expected for copper products, Commerce is instructed to create an “inclusions” process for bringing additional wood products within the scope of these Section 232 tariffs. However, the process itself may differ from the public-facing, participatory framework established in the context of steel, aluminum, and automobiles. In the first instance, the Proclamation contemplates inclusion determinations based on Commerce-led import monitoring. In addition, the process “may include receiving requests or information from domestic producers of wood products or other interested entities or individuals,” but is not so required. Unlike the Section 232 Proclamation for copper products, no particular timeline for introducing the wood products inclusions process is specified.
Finally, the list of HTSUS subheadings excluded from IEEPA reciprocal tariff coverage includes certain subheadings appearing in Chapter 44 of the HTSUS, which generally covers “Wood and articles of wood; wood charcoal.” Monday’s proclamation instructs the removal of some of those Chapter 44 subheadings. The subheadings to be removed will presumably be specified in implementing HTSUS language.
Limited Visibility Into a Complex Process
According to the Proclamation, Commerce issued its report to the President in this Section 232 investigation on July 1, 2025, less than four months after the investigation had been formally initiated. However, as has been the case with the other Section 232 investigations concluded this year, that report has not been released for public review. As such, there is limited visibility into what other product groups might have been formally evaluated for separate tariff treatment.
In addition, while Commerce issued its report well before the 270-day statutory deadline, the President took the entire 90-day statutory timeframe to announce his concurrence with certain of Commerce’s findings as well as the “nature and duration of the action” to be taken in response. This may suggest some added complexity in designing a tariff action viewed as effective by the Trump Administration, given the ostensibly broad investigation.
Preparing Supply Chains
Cassidy Levy Kent’s attorneys, economists, compliance experts, and licensed customs brokers are ready to help companies develop strategic responses to the latest changes in U.S. tariff policy and plan for potential developments. Cassidy Levy Kent has extensive experience counseling clients to plan compliant supply chains that manage tariff risks, and we routinely assist with preparing and filing comments for consideration in Section 232 investigations. Our team’s deep familiarity with trade law and policy enables clients to adapt and stay ahead of the curve.