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  • Product: ONESOURCE Global Trade

New section 232 tariffs on imports of timber, lumber, and derivative products

Date of publication: October 14, 2025

Summary

On September 29, 2025, President Trump issued a proclamation under Section 232 of the Trade Expansion Act of 1962 imposing new tariffs on certain wood products to address a declared national-security threat. The action follows a July 1, 2025 report from the Secretary of Commerce concluding that imports of timber, lumber, and derivative products are being brought into the United States in quantities and under circumstances that threaten to impair national security.
The new tariff rates are effective for goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on oct. 14, 2025.

What is impacted

The new tariffs, issued under Section 232 of the Trade Expansion Act, cite national security concerns and are applied globally, though special exemptions exist for some trading partners. The proclamation establishes new ad valorem duties on softwood timber and lumber and on specified finished and semi-finished wood products, sets higher “step-up” tariff rates beginning January 1, 2026 for certain categories, directs ongoing negotiations with trading partners, and sets up processes to expand coverage and counter undervaluation.
The new tariffs are applied as follows:
  • Softwood timber/lumber:
     A 10% tariff via HTS 9903.76.01 (examples: 4403.11, 4406.11, 4407.11–.19). For Canadian softwood, this is added to existing anti-dumping and countervailing duties, bringing the total combined tariff to over 45% for some products.
  • Upholstered wooden furniture:
     A 25% tariff via HTS 9903.76.02; rises to 30% on January 1, 2026. UK cap: 10% (HTS 9903.76.20). EU/JP total cap: 15% (HTS 9903.76.21 JP and HTS 9903.7.22 EU).
  • Kitchen cabinets/vanities and parts:
     A 25% tariff via HTS 9903.76.03; rises to 50% on January 1, 2026. UK 10% cap; EU/JP 15% total cap as above.
  • 9903.76.04:
     For items in the same base headings as cabinets/vanities that are not wooden kitchen cabinets/vanities or their parts (other additional Chapter 99 duties may still apply).
Some countries have been granted special treatment under the new rules as noted above:
  • United Kingdom
    : Wood products face a maximum 10% tariff cap
  • European Union and Japan
    : A combined Section 232 and most-favored-nation duty rate has a maximum of 15%.
A list of the specific HTS impacted can be found in Annex I of the FRN.
Additional details on the proclamation include
:
  • Exclusions:
     The tariff shall not apply to products subject to the autos / parts Section 232 tariffs, IEEPA reciprocal tariffs, IEEPA border (Canada / Mexico) tariffs, IEEPA tariffs on Brazil, or IEEPA Russian Oil tariffs.
  • Free Trade Agreement goods:
     FTA qualifying goods will still be eliveible for preference for the MFN tariffs.
  • FTZ:
     Products admitted to an FTZ after 12:01 am Eastern on October 14 must be admitted in privileged foreign status (19 CFR 146.41). Goods eligible for admission to an FTZ under domestic status are exempt from the tariffs.
  • Scope expansion:
    The Bureau of Industry and Security within the Department of Commerce will be continually monitoring the imports of subject goods and add further derivative products to those that are subject to the tariffs.
  • Duty drawback:
     Drawback is available.
  • The proclamation also removes more than 150 tariff subheadings from Chapter 44 from the list of goods exempt from reciprocal tariffs, effective October 14.

Key dates

  • September 29, 2025: Proclamation signed and Fact Sheet published.
  • October 6, 2025: Federal Register Notice publication (scheduled).
  • October 14, 2025, 12:01 a.m. EDT: Tariffs take effect; FTZ privileged foreign status requirement begins.
  • January 1, 2026: Rates increase to 30% (upholstered furniture) and 50% (cabinets/vanities).
  • By January 1, 2026, and again by March 28, 2026: USTR progress updates on negotiations.
  • October 1, 2026: Commerce report on hardwood; potential future action.

Next steps

Companies importing wood products should assess how the new tariffs will impact their cost structures and pricing strategies. The following provides a general checklist for companies to consider as they review necessary compliance measures.
  • Determine Annex I coverage:
     Map your SKUs to HTSUS codes to confirm whether they fall within the covered lists for softwood, upholstered wood items, and cabinet/vanity categories.
  • Country-of-origin review:
     Assess exposure by origin, particularly for UK, EU, and Japan, where ceilings or combined-rate limits apply.
  • Model the date triggers
    :
    • October 14, 2025: initial rates apply.
    • January 1, 2026: step-up to 30% (upholstered wood) and 50% (cabinets/vanities).
  • FTZ strategy:
     If you use FTZs, adjust to privileged-foreign status for covered items admitted on/after October 14, 2025.
  • Valuation controls:
     Prepare for potential specific/compound/mixed duties if Commerce identifies undervaluation risks for your product class.
  • Drawback:
     Evaluate drawback opportunities for re-exports or qualifying uses.
  • Contracts and pricing:
     Add Section 232 tariff pass-through clauses, re-price bids for deliveries spanning 2025–2026, and revisit supplier terms.
  • Origin engineering and sourcing:
     Consider shifts to domestic or to partners where capped rates apply; watch for future product additions to coverage.
  • Monitor Federal Register:
     For HTSUS modifications, added product coverage, and any notices on undervaluation-based duty formats.
  • Watch for negotiations outcomes:
     USTR updates before January 1, 2026 and by late March 2026 (180 days after the proclamation) could alter tariff application by country.
Further, companies should consult with legal and trade advisors to navigate the implications of the Proclamation and ensure compliance with any new regulations.

Conclusion

This latest proclamation uses Section 232 to impose new national-security tariffs on key wood product categories, with higher rates scheduled for 2026, targeted ceilings for certain partners, and mechanisms to broaden coverage and address undervaluation. Importers and downstream users should quickly map exposure, update pricing and contracts for shipments crossing the October 14, 2025, and January 1, 2026, thresholds, and monitor Federal Register notices and USTR/Commerce updates that could adjust scope, rates, or country treatment.
For more information on how ONESOURCE Global Trade solutions can assist you in managing supply chain risk, denied party screening and regulatory compliance, contact your Account Manager or Client Success Manager.