NEWS

The U.S. midterm elections are over. Voters voiced their displeasure with high prices and took out their rage on Republicans, the party in power, and gave control of Congress to the Democrats. However, a recent poll showed that 29% of voters surveyed view the Democratic Party positively, while 38% view the Republican Party positively. So, the election outcome may be viewed as more of a red wipeout than a blue wave. If voters don't see the changes they want, another wipeout may be coming in 2028.

What does the election mean for our industry? Trump's tariffs, particularly on imports from Canada, will be one of the Democrats' biggest targets, and they are likely to get some support from Republicans in Congress. However, changing tariff policy through legislation will be tough. Democrats would need 60 votes in the Senate to overcome a filibuster, and a two-thirds majority in the House and the Senate to override a presidential veto. Both are high hurdles. Recognizing coming pressure, the Trump administration may make a deal with Canada before the end of the year.

The good news for hardwood plywood: antidumping and countervailing duties are secure. They have gone through a well-established legal process and have strong bipartisan support.

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

Keith A. Christman, President

U.S. voters have spoken, and big changes are on the horizon in 2027. Democrats will control Congress, hold a majority of governorships, and gain at least 500 seats in state legislatures. The Hardwood Federation - of which DHA is an important member - reaffirmed that they are well positioned to represent the best interests of the hardwood industry, as they have worked hard over the years to conduct our work on a bipartisan basis.

In January, expect the Democrat-led Congress to target President Trump's trade war with Canada first in a campaign to roll back the administration's tariff policies. "There is overwhelming support for repealing the tariffs on products from Canada," said Oregon Senator Ron Wyden, who will likely chair the Senate Finance Committee beginning in January.

In the Fall issue of Surface & Panel, DHA President Keith Christman makes a compelling case for buying more U.S. hardwood and decorative plywood. High antidumping and countervailing duties on hardwood plywood from China, Indonesia, and Vietnam have substantially increased import costs. Stricter trade enforcement has increased risk and added legal liability.

All thirty-one association members of the Hardwood Federation signed a letter urging the Trump administration and USDA to include companies in the hardwood supply chain in relief efforts to address the high cost of diesel fuel.

Democratic Leader Hakeem Jeffries criticized the bipartisan bill to reform the permitting process, stating that it falls short on National Environmental Policy Act (NEPA) reform and tribal sovereignty, and requested changes. This complicates the bill's path to becoming law this year.

If the Trump administration follows through on its current plans, the 25% Section 232 tariffs on kitchen cabinets will double to 50% on January 1. Canadian cabinet makers are already struggling with the tariffs and with dumped and subsidized cabinets from China. Some manufacturers are weighing options for moving part of their production to the U.S.

The scheme to avoid U.S. tariffs by exporting semi-finished products from China followed by simple assembly in Southeast Asia is no longer feasible. New Section 301 tariffs added another 12.5% tariff on imports from Vietnam and Thailand and 10% on those from Malaysia, Indonesia, and Cambodia. U.S. Customs has strengthened enforcement against false claims of origin and transshipment. While not enough to cause another large-scale factory relocation, these measures discourage transshipment.

Despite new U.S. tariffs, Canada reported the largest trade surplus in four years. Canada's month-over-month trade surplus with the U.S. grew from $12.1 billion to $12.3 billion in September. Exports increased slightly after the implementation of Section 338 tariffs in late August.

U.S. housing starts fell to just 1.22 million units in September as single-family building activity fell to 859,000, the lowest monthly total in a year. Housing markets worldwide are also weakening, negatively affecting global timber markets.

The National Kitchen & Bath Association has released its 2027 Kitchen Trends Report. The report found that designers are moving away from completely open layouts in favor of defined zones, partial walls, and operable partitions, and that the overall kitchen footprint is growing. 34% of designers expect natural material cabinets - with no finish - to be popular. White oak is the wood of choice for 49% of designers.

November is National Career Development Month. This is our opportunity to recognize the programs that introduce our youth to careers in the timber and wood products industry, and the importance of investing in the next generation of skilled professionals.

Capital Testing's ISO-accredited Legal Timber Due Diligence certification program helps companies comply with legal timber requirements, demonstrate their commitment to using legal timber, and strengthen their due diligence programs. Contact Capital Testing to learn more about how certifying to the LTDD standard helps build customer confidence while reducing legal and financial risks.

Forests are critical infrastructure, with an estimated value of almost one-quarter of global GDP, supporting resilient economies and thriving societies. Nearly one in three people worldwide depend on forest goods and services for their livelihoods, food and water security, and nutrition.

The U.S. Forest Service scaled back a vegetation clearing project in California's Los Padres National Forest by about 85% after objections from the public and from a coalition of 91 community organizations.

Why are porcupines enemies of hardwood trees?