NEWS

Welcome to DHA’s first newsletter of 2026! 2026 is sure to be another year full of dramatic changes that will impact our industry. DHA will continue to advocate for our members, promote our products, and make sure our members are well-informed about changes that will affect their businesses.

2026 is off to a rapid start as the Trump administration announced a one-year delay in the increase in Section 232 tariffs on cabinets from 25% to 50%, now scheduled to take effect in January 2027. The administration appears to be rethinking some tariffs as organizations like the National Association of Home Builders push back on tariffs that they claim will increase home prices.

However, cabinet tariffs represent an insignificant increase in home prices and pale in comparison to regulatory costs. U.S. cabinet manufacturer capacity utilization rates have fallen below 40% and U.S. cabinet sales have declined throughout 2025. It’s not clear if the current 25% Section 232 tariffs will be enough to prevent the continued dumping of cabinets into the U.S., which is decimating U.S. cabinet manufacturers.

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

Keith A. Christman, President

PHOTO © MOLLY RILEY, THE WHITE HOUSE

On September 29, the administration announced 25% Section 232 tariffs on imported cabinets, which would be increased to 50% in January 2026. On December 31, President Trump delayed the increase in Section 232 national security-based tariffs on cabinets to 50% by one year, to January 2027. The administration's explanation cited productive negotiations with trade partners to address trade reciprocity and national security concerns.

The American Kitchen Cabinet Alliance (AKCA) was disappointed by the Trump administration's decision to delay by one year the 50% tariffs on kitchen cabinet imports. "While the current tariff rate of 25% is providing some relief, the AKCA relayed concern that by delaying the promised 25% rate increase, the American cabinet industry will remain on life support."

Regarding the delay in the tariff increase on cabinets and other tariff rollbacks, the National Association of Home Builders (NAHB) said, "With the nation facing a housing affordability crisis, NAHB continues to urge the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains and place upward pressure on home prices."

The Trump administration will rescind the 2024 independent contractor rule and replace it with more employer-friendly terms under the Fair Labor Standards Act. While the exact wording has not yet been published, the process is already underway and the Department of Labor has made its intent clear.

The Forest Resources Association commented in support of proposed revisions to the waters of the United States (WOTUS) rule under the Clean Water Act, which would realign federal jurisdiction with the 2023 Supreme Court decision. The proposed revisions clarify that "traditional navigable waters" must be capable of commercial navigation, remove the "interstate waters" category, and define "relatively permanent" tributaries.

The most recent data available shows that U.S. imports of hardwood plywood continued to grow in 2025, up by 25% in value through September. Imports from Indonesia accounted for nearly 32% of imports and increased by more than 50%. Vietnam was the second-largest source of imports at 22%, an increase in value of 48%.

Rumors swirled that the Supreme Court would decide by January 14 whether the Trump administration could impose tariffs under the International Emergency Economic Powers Act (IEEPA). This did not happen; the ruling may be announced next week. Most experts believe the Court will rule against the IEEPA tariffs. However, this is unlikely to affect bilateral agreements between countries, and the administration has many other ways to impose tariffs.

Poland has arrested members of a criminal network accused of smuggling timber products from Russia and Belarus into the EU. Three Polish and two Russian citizens were arrested in December and face charges of circumventing EU restrictions on imports of Russian and Belarusian plywood and wooden planks.

The volume of U.S. cabinets sold continues to decline, falling by 16.8% in November 2025 vs. November 2024. Unfortunately, this continues the declining trend, as sales volume fell by 13.5% from January to November 2025 vs. one year ago.

A conservation project led by Cornell University and the Nature Conservancy is propagating ash trees that are resistant to the emerald ash borer. If successful, the long-term project will reintroduce resistant white, green, and black ash trees to repopulate the species.

Deep underground, forest fires continue to burn in British Columbia. The intense 2025 wildfire season resulted in overwintering wildfires, or "zombie fires," that continue to burn deep underground through the winter. The fires spread below the forest floor in dried-out peat and can reignite in spring as full-fledged forest fires.

Which hardwood species were part of NASA’s Moon Tree program?