
US President Donald Trump is to slap 10% tariffs on imported
timber and lumber, as well as 25% duties on kitchen cabinets,
bathroom vanities, and upholstered furniture.
A presidential proclamation set out the plans, arguing that
timber, lumber, and furniture imports are eroding US national
security. The new duties will come under Section 232 of the
Trade Act of 1974.
Trump’s increasing use of Section 232 comes as he awaits a
Supreme Court ruling on the legality of his broader “reciprocal”
tariffs on global trading partners, which two lower courts have
struck down. It was Section 232 which he used to expand tariffs
on steel and aluminium, which Off-Highway Research warned this
week was likely to have an inflationary effect on construction
equipment for US buyers.
The newly announced timber and lumber tariff rates would
start on 14 October. But the proclamation added that duties
would increase on 1 January to 30% for upholstered wooden
products and 50% for kitchen cabinets and vanities imported from
countries that failed to reach an agreement with the United
States.
Trump’s proclamation said wood product imports were weakening
the US economy, resulting in the persistent threat of closures
of wood mills and disruptions of wood product supply chains.
“Because of the state of the United States wood industry, the
United States may be unable to meet demands for wood products
that are crucial to the national defense and critical
infrastructure,” the statement said.
The order added that wood products were used for “building
infrastructure for operational testing, housing and storage for
personnel and materiel, transporting munitions, as an ingredient
in munitions, and as a component in missile-defense systems and
thermal-protection systems for nuclear-reentry vehicles.”
The action is expected to have a marked impact on Canada, the
biggest softwood lumber supplier to the US. Producers there
already face combined US anti-dumping and anti-subsidy tariffs
of about 35%.
Mexico and Vietnam are also growing suppliers of wooden
furniture to the US after Trump hit Chinese furniture products
with tariffs of up to 25% during his first term starting in
2018. Those duties have since been raised to about 55% and now
could nearly double for cabinets and vanities.
But Trump said tariffs on wood products from Britain would be
capped at 10% and those from the European Union and Japan would
be capped at 15% - rates in line with the base tariff rate in
those framework agreements.
Source:
constructionbriefing.com