August 07, 2025

DHA eNews – No Deal For Canada: Trump Raises Tariffs To 35%

DHA Insights: August 7

As the Trump administration finalized its reciprocal tariffs last week, DHA discussed recent developments in wood trade and hardwood plywood antidumping and countervailing duties cases with Floor Daily. Although we are still awaiting a decision on the Section 232 national security investigation that is likely to result in high tariffs on most decorative hardwood products, the reciprocal tariffs are significant and appear to affect the remaining hardwood products. The trade cases and actions by the Trump administration are redefining the U.S. approach to imports of wood products, which will hopefully reinvigorate decorative hardwood products manufacturing after decades of being battered by unfair trade practices, particularly from Asia.

A big part of trade enforcement in wood products is identifying the wood species and its origin. DHA, the Hardwood Federation, and the World Wildlife Fund joined forces in a letter to the U.S. Department of Agriculture that underscored the importance of WISC, the government program used to identify wood products in trade enforcement. We are happy to report that USDA has decided to continue to fund WISC.

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

Keith A. Christman, President
Keith A. Christman, President

No Deal For Canada: Trump Raises Tariffs To 35%

On July 31, President Trump raised tariffs on imports from Canada to 35%. However, decorative hardwood products should be largely unaffected, as goods qualifying for preferential tariff treatment under the U.S.-Mexico-Canada Agreement (USMCA) are exempt and most decorative hardwood tariff codes are covered by the Section 232 national security review exemption from reciprocal tariffs. 

There is another important provision that could address a longstanding problem: any goods found to be transshipped to evade the 35% tariff will be subject to a transshipment tariff of 40%.

U.S. Finalizes Reciprocal Tariffs

On July 31, President Trump announced new reciprocal tariff rates. Tariffs on imports from Brazil were set at 50%. Tariffs for Indonesia, Malaysia, Thailand, and Cambodia were set at 19%. A tariff of 15% will apply to most other countries. Goods found to be transshipped will be subject to a 40% tariff. For now, wood products subject to the Section 232 national security investigation appear to be exempt.

Success: DHA Helps Win Wood ID Funding

At this year's annual meeting, the DHA board of directors asked us to ramp up advocacy for the Forest Service International Programs Wood Identification and Screening Center (WISC). We did—and were successful. The program will be funded. WISC provides the scientific testing to verify species and sources of wood imports, and is an essential enforcement mechanism to prevent illegal logging from flooding U.S. markets.

DHA Discusses Shifting Landscape For Imports Of Wood Products

In an interview with Floor Daily, DHA President Keith Christman outlined how the landscape for U.S. imports of wood products is fundamentally changing as the U.S. takes steps to begin to level the playing field. The hope is that this will create a more equitable market for U.S. manufacturers of decorative hardwoods. 

USDA Announces Major Reorganization

The U.S. Department of Agriculture has announced its restructuring plan. It appears that more than half of the 4,600 employees in the Washington, D.C. area will be moved into one of five hubs: Raleigh, NC; Kansas City, MO; Indianapolis, IN; Fort Collins, CO; and Salt Lake City, UT. The nine U.S. Forest Service regional offices will be eliminated over the next year.
 

New Jobs In The Woods Act Would Strengthen Paths To Forestry

The bipartisan Jobs in the Woods Act continues to move forward in the legislature. The bill would establish a federal grant program to support workforce training in forestry careers. Grants would be available to nonprofits, state agencies, and colleges to help prepare people for careers in the timber industry and public land management, including the U.S. Forest Service.
 

EPA Proposes Repeal Of Greenhouse Gas Regulations

The Environmental Protection Agency has proposed a repeal of the 2009 Endangerment Finding, which requires the agency to limit carbon dioxide, methane, and four other air pollutants from vehicles, power plants, and other industries under the Clean Air Act.
 

KCMA Presents Evidence Of Transshipping Of Chinese Cabinets

In July, the Kitchen Cabinet Manufacturers Association testified in detail in the U.S. Court of International Trade about an alleged sophisticated scheme to transship cabinets manufactured in China through Malaysia to the U.S. to avoid duties.
 

China's Plywood Exports Rise By 12%

China exported 6.2 million cubic meters of plywood in the first six months of 2025, a 12% increase over last year. Both Saudi Arabia and the United Arab Emirates imported 50% more plywood from China so far this year. Imports into Nigeria grew by 39%; into Australia, by 21%; and into the Philippines, by 3%.
 

AHEC’s Free EUDR Compliance Platform Goes Live

It’s live! The American Hardwood Export Council's American Hardwood Assured (AHA) platform has been launched and is ready to use. The free platform helps any U.S. hardwood exporter quickly prepare AHA statements that demonstrate the negligible risk of illegal logging or deforestation.
 

Pat Oakley Discusses Mullican's Growth

In an interview with Floor Daily, DHA member Pat Oakley, President of Mullican Flooring, discussed what is driving the company's growth despite the soft market for residential flooring.
 

Lawmakers Advance Housing Package

A bipartisan housing package designed to address the critical lack of housing supply is moving forward in the U.S. Senate. NAHB Chairman Buddy Hughes emphasized the importance of the legislation, stating that "building more homes is the only way to ease America's housing affordability crisis, and the ROAD to Housing Act includes favorable provisions aimed at zoning and land-use policies, rural housing, and multifamily housing that will stimulate construction of sorely needed housing."
 

No-Cost Technical Assistance Now Available

The U.S. Forest Service–Wood Innovations has partnered with the U.S. Endowment for Forestry and Communities to provide direct, expert technical assistance to wood products manufacturers. This program is specifically designed to help wood manufacturers remain competitive and keep forests healthy.
 

Forest Management Saves Species & Increases Water Supply

Decades of suppressing wildfires and preventing thinning resulted in overcrowded, unhealthy forests, researchers say. California's forests have grown to 5 to 10 times their historical density. Experts have documented the benefits of logging, prescribed burns, and thinning forests, which include saving endangered species and increasing the water supply.
 

U.S. Invests $23M To Remove Dead Wood

The U.S. Department of Agriculture will invest $23 million to remove hazardous wood from national forests to help prevent wildfires and to use that wood productively. The program, run by the U.S. Forest Service, encourages state and local organizations to repurpose dead trees and dense undergrowth.
 

U.S. Labor Market Weakens As Job Growth Stalls
U.S. Manufacturing Activity Continues To Fall
Federal Reserve Holds Steady On Interest Rates
Homeownership Rate Drops To Lowest Level In 6 Years
Existing Homes Now Outprice New Homes
Existing Home Sales Fall To 9-Month Low
New Home Sales Stagnate
Private Residential Construction Spending Falls
Consumer Sentiment Improves
Average 30-Year Mortgage Rate Eases To 6.72%
Wood Trivia: Test Your Knowledge

What hardwood species helps prevent wildfires from spreading?
 

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