DHA Insights: July 10, 2025
Trade policy dominates the headlines again and the changes will impact the decorative hardwoods industry. On July 3, the U.S. International Trade Commission took an essential next step in the trade case brought by the Coalition for Fair Trade of Hardwood Plywood when the commissioners unanimously voted to continue investigation of hardwood plywood dumping by China, Vietnam, and Indonesia. Although preliminary countervailing duty determinations are due on August 15, importers should not rush to import hardwood plywood before then. If imports increase, duties can be applied retroactively.
The reciprocal tariff agreement with Vietnam is also likely to reduce imports from Vietnam, as baseline tariffs are reported to be set at 20%. However, the agreement also includes a provision that doubles the rate for transshipped Chinese wood products, which has been a huge problem for our industry. President Trump also announced a delay in the reciprocal tariffs to August 1 and sent letters to many countries in Asia with new rates. My guess is that Vietnam's deal may be the Asia model. Recall that the reciprocal tariffs don't apply to the wood products covered by the Section 232 national security review, which could come any day now.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President