NEWS

I hope you all are enjoying some vacation time as summer comes to a close and Congress is on recess. This presents an opportunity to reflect on the year so far and the dramatic policy changes affecting the decorative hardwoods industry and the U.S. economy.

Trade has been a huge part of those changes. From the trade cases filed against China, Vietnam, and Indonesia to the national security review of wood product imports—with decisions to be announced soon, expect major changes in trade from now through the end of the year. 

There have also been dramatic changes in regulatory and fiscal policy. The administration tossing out the climate policy endangerment finding was just one. Most recently, and lower profile: the administration announced changes to diesel rules that are expected to save small businesses and contractors, including those in our industry, more than $700 million per year. The budget reconciliation extension of existing tax rates and investment tax credits is an important policy that benefits the businesses in our industry and the families who work in and run them.

If you have questions or comments, contact me. I look forward to hearing from you.

Keith A. Christman, President

The European Commission released new guidance on the EU Deforestation Regulation (EUDR). Now, timber designated as "low risk" should face significantly fewer compliance checks. The Commission confirmed that EUDR will go into effect on December 30, 2025, for large companies. Micro and small enterprises will need to comply with the EUDR beginning June 30, 2026.
 

On August 12, President Trump signed an executive order that will hold the U.S. reciprocal tariff rate on Chinese imports at 10% through November 10, while negotiations continue. The U.S. will retain all tariffs imposed on China before April 2, including Section 301 tariffs, Section 232 tariffs, tariffs imposed under the International Emergency Economic Powers Act, and most favored nation tariffs.
 

As of September 2, the U.S. State Department will eliminate most interview waivers for H-2B visa applicants and require in-person consular interviews for seasonal workers. This change may delay visa processing and disrupt workforce planning for forestry operations, particularly during peak wildfire recovery and reforestation periods.
 

Recent EPA guidance on diesel exhaust fluid (DEF) systems will reduce costly engine shutdowns across the agriculture, forestry, and transportation sectors. Trucks can now run up to 650 miles after a DEF fault, and forestry equipment gets a 36-hour grace period. These changes are expected to save contractors and small and family-run businesses more than $700 million every year.
 

The Trump administration is working to allow logging on tens of millions of acres of national forest. The removal of the rule that prevents this is not a done deal, though. Challenges include potential lawsuits from environmental groups, the consequences of government downsizing—the U.S. Forest Service is facing budget cuts and staffing shortages, and even a soft timber market.
 

U.S. imports of hardwood plywood reached nearly 300,000 cubic meters in June, 40% higher than in June 2024. Imports of hardwood plywood slowed after strong performance in May, dropping by 13% vs. the previous month. Imports from Indonesia, the leading supplier, grew by 60% so far this year. Imports from Vietnam have grown by 36%.
 

U.S. tariffs on imports of plywood and paneling are negatively affecting the market, according to importers. Although prices are stable right now, many suppliers won't guarantee pricing for more than seven days, affecting long-term projects. Customers are concerned about price increases, resulting in fewer orders and delayed purchases.

American Hardwood Export Council (AHEC) has provided yet another valuable resource: a detailed analysis of exports of U.S. hardwood lumber, logs, and veneer for the first half of this year. The tool includes the value and volume of exports, and export values by state for logs and lumber. Open the tariff tracker tab for the latest available tariff rates and a timeline of changes.
 

BC Veneer, a manufacturer of softwood veneer, may be forced to shut down due to a shortage of logs caused by government-imposed caps. The British Columbia manufacturer hasn't been able to secure the logs needed to keep operations running, as its log supplier on Vancouver Island has already reached its annual limit.
 

DHA member Roseburg has teamed up with woodworking expert April Wilkerson. The resulting six-minute video, 36 Things to Know about Plywood, explains face grades, the differences between hardwood and softwood, common uses, and long-term maintenance.
 

Capital Testing's ISO-accredited Legal Timber Due Diligence certification program helps give wood products companies confidence that illegally sourced timber is excluded from their supply chain. Certification demonstrates a commitment to legal timber—something customers value—while mitigating companies' legal and financial risks.
 

The combination of the changing climate, new diseases, more invasive insects, extreme weather events, and continued loss of habitat has left trees stressed, damaged, and, in one arborist's words, "just plain confused."
 

Maine state foresters recently recorded the first deaths of beech trees from beech leaf disease. Beech trees, which are common in Maine forests and an important food source for wildlife, could be decimated by the disease. Beech leaf disease was first found in the state four years ago and has already spread to all 16 counties.
 

As part of the Trump administration's push to boost domestic lumber supplies, logging in the Allegheny National Forest will increase by more than 10% this year. This has set off a fierce debate over the best way to manage national forests to reduce wildfire risks and improve forest health.
 

Which U.S. states are losing the most land to wildfires?