NEWS

Tariffs took center stage again on February 20 when the U.S. Supreme Court tossed out President Trump's IEEPA tariffs. It’s not clear how much impact the ruling will have, as the Trump administration immediately announced temporary new 15% tariffs, and previously negotiated agreements remain in place. Long-term measures, including the hardwood plywood trade antidumping and countervailing duty cases, are also unaffected.

All of this change makes it even more important for companies to join DHA and attend our annual meeting to get the latest information on trade and other policies affecting our industry.

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

Keith A. Christman, President

PHOTO © DANIEL TOROK

On February 20, the U.S. Supreme Court ruled that President Trump's 2025 International Emergency Economic Powers Act (IEEPA) tariffs were unlawful. The ruling does not affect individual trade deals the Trump administration negotiated with other countries, nor does it affect Section 232 duties on cabinets and furniture, Section 301 duties on China, or antidumping and countervailing duties.

On February 20, President Trump imposed a 10% tariff on all imports under Section 122 of the Trade Act of 1974 and stated that his administration would begin new investigations under Section 301 of the Trade Act of 1974 and other authorities, which might result in additional duties. On February 21, he announced that the global tariff would be increased to 15%.

DHA joined more than 500 organizations to urge Congress to "take decisive action to modernize the definition of woody biomass under the Renewable Fuel Standard (RFS) to enable the use of wood as a qualifying RFS feedstock." U.S. working forests are facing mounting economic pressure as long-standing markets for pulpwood and residuals continue to disappear.

The House Committee on Agriculture has released a draft of the 2026 Farm Bill, which includes additional funding for export promotion programs that support the American Hardwood Export Council and ongoing funding for Wood Innovations, Community Wood, and Wood Products Infrastructure Assistance grants. The draft bill also includes the Jobs in the Woods Act, which would fund job training programs in the wood products industry, and language to codify biomass carbon neutrality.

The Office of Management and Budget has completed its review of the Department of Labor's proposed Independent Contractor Rule, clearing the way for the agency to publish the proposal in the Federal Register. The expected result is a more streamlined, business-friendly classification standard for independent contractors. 

The Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act would create a federal assistance program to provide financial relief to forest products harvesting and hauling businesses affected by market disruptions such as mills closures, lower timber prices, or less demand.

The European Commission stated that "A deal is a deal," emphasizing that the EU expects the U.S. to honor the 2025 joint understanding. Under the existing agreement, tariffs on most EU products are capped at 15%.

The U.S. Supreme Court's decision to strike down IEEPA tariffs was met with mixed reactions in Quebec, as the steel, aluminum, and lumber sectors remain subject to U.S. tariffs. Economy Minister Boulet stated, "At first glance, its effects for Quebec seem limited," as Quebec exports under the United States-Mexico-Canada Agreement (USMCA) were already exempt.

Despite sanctions, Russian birch plywood continues to flow into the U.S. market through direct shipments from Russia and through third‑country processors. Four years after Russia invaded Ukraine, the U.S. continues to import at least 10,000 cubic meters of Russian birch plywood each month.

U.S. imports of hardwood plywood fell for a second consecutive month in November 2025, down by 18% from October to 232,877 cubic meters. November 2025 imports were down by 9% from November 2024. The decrease was driven by a 64% drop in imports from Indonesia to their lowest level since June 2023. Imports from Vietnam and Russia fell sharply, by 32% and 35%, respectively. U.S. imports from January to November 2025 grew by 23% vs. the previous year. 

U.S. imports of wooden furniture fell for the fourth consecutive month in November to the lowest level since the 2020 pandemic. November imports fell by 3% from October's total to $1.4 billion, 23% below November 2024, the lowest level since June 2020. November imports from Mexico and China fell by 21% and 13%, respectively. Total U.S. imports of wooden furniture from January to November fell by 8% vs. the prior year.

The American National Standard for Hardwood and Decorative Plywood, ANSI/HPVA HP-1, establishes nationally recognized marketing classifications, quality criteria, test methods, and definitions for decorative and hardwood plywood. Read the recent article on HP-1 published by the experts at Capital Testing on the benefits of certification and how to certify to the standard.

The Bureau of Land Management will revise the resource management plan for nearly 2.5 million acres of forests in Oregon, which could quadruple the amount of timber open to logging on Oregon & California Railroad lands. The agency seeks to increase its sustained yield timber harvest to about 1 billion board feet each year, an amount that would match the level harvested before conservation restrictions in the 1990s.

The U.S. Forest Service will provide up to $95 million in Wood Innovations grants for projects that advance innovative uses of wood, expand wood-based construction, or grow U.S. wood energy markets and forest products processing capacity. These grants are open to businesses in our industry.

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