Most imported laminate flooring, engineered flooring and hardwood/plywood had been exempt from tariffs under Section 232 of the Trade Expansion Act—a provision in U.S. law that allows the President to impose tariffs or other restrictions on imports that threaten to impair the national security of the United States. However, come October 14, the aforementioned product categories will be subject to separate “reciprocal tariffs” that could be as much as 20%, depending on the country.
In a proclamation published by the Trump Administration on September 29, the President cited the results of an investigation led by the Secretary of Commerce, Howard Lutnick. Specifically, the report found that wood products are being imported into the U.S. “in such quantities and under such circumstances as to threaten to impair the national security of the United States.” Furthermore, the Secretary provided recommendations for action under Section 232 to adjust the imports of wood products so that such imports will not threaten to impair the national security of the United States.
In the September 29 proclamation, President Trump wrote: “The Secretary found that present quantities and circumstances of wood product imports are weakening our economy, resulting in the persistent threats of closures of wood mills and disruptions of wood product supply chains, among other things, and diminishing the utilization of production capacity of our domestic wood industry.”
Beginning October 14, the Trump administration will impose a 10% tariff on softwood timber and lumber and a 25% tariff on upholstered wooden furniture and kitchen cabinets. On Jan. 1, 2026, the levies on upholstered furniture—such as couches, sofas and chairs—will rise to 30% and kitchen cabinets will see an increase to 50%. Tariffs on wood products from the UK will be capped at 10%, while Japan and the EU face a 15% tariff ceiling.
Not everyone is onboard, though. “These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” wrote National Association of Home Builders chairman, Buddy Hughes. According to NAHB, the U.S. imports roughly one-third of the lumber it consumes because the country does not produce enough softwood lumber to meet its domestic demand. In the past several weeks, the U.S. Commerce Department has more than doubled tariffs on Canadian lumber from 14.5% to 35%. With the new 10% tariff, Canadian lumber tariffs will rise to 45%.
According to the Greenberg Center for Geoeconomic Studies, the United States imports roughly 30% of the lumber that it consumes. A third of the wood products subject to Section 232 levies are sourced from Canada; Vietnam sends 26%, followed by China, which ships 11%. The U.S. lumber industry has sought restrictions on Canadian lumber imports for the past 25 years, which they allege receives unfair Canadian subsidies, according to the Center. They also have accused Canada of dumping its lumber in the U.S. market.
Hardwood flooring suppliers who were willing to go on the record with FCNews said they prepared for what’s coming. “In anticipation of the upcoming tariffs, we’ve significantly increased our U.S. inventory levels to the point that we don’t plan to increase any prices in the near future,” said Bill Schollmeyer, vice president of sales for R&J Flooring Supply, the U.S. distribution arm for Denali Hardwood, which is produced by a family-run manufacturing operation in Vietnam. “Given the volatility and inconsistency of the various tariff policies, we’re simply going to continue with business as usual and work from our existing inventories. It’s our hope that the tariffs being considered across our entire industry would be implemented with strategic, long-term planning so that our customers—and consumers—are not subject to constantly changing flooring prices.”
Section 232—A historical view
Section 232 was established by the Trade Expansion Act of 1962 and requires an investigation by the Department of Commerce to determine the national security impact of imports. Recent examples include tariffs on steel and aluminum, lumber and investigations into semiconductors, pharmaceuticals and commercial aircraft.
The Trump Administration used Section 232 to impose tariffs on steel and aluminum back in 2018, and more recently on timber and lumber products. In 2018, Trump imposed Section 232 tariffs of 25% on steel and 10% on aluminum. He re-upped duties quickly after beginning his second term in office, placing 25% tariffs on both metals in February 2025, then doubling fees to 50% in June, according to the Greenberg Center.
In August, Trump broadened the scope of the tariffs, taxing the steel and aluminum content of goods ranging from motorcycles to lawn mowers. The United States will also consider reduced tariff-rate quotas for steel, aluminum and derivative products from the European Union. There are carve-outs, though: The order exempts some products made from steel and aluminum if the steel was melted and poured—or the aluminum smelted and cast—in the United States. Otherwise, it taxes only the dollar value of their steel or aluminum content.
With respect to imported wood products, the aforementioned proclamation leaves open the possibility for the Section 232 list to be expanded. That’s providing some encouragement for groups like The Decorative Hardwoods Association (formerly the Hardwood Plywood Veneer Association), which has long expressed its support of tariffs on wood products as part of an ongoing Section 232 review.
“DHA has ramped up our advocacy to get our products included, sending a direct communication to President Trump and publicizing this in the press,” wrote Keith Christman, DHA president. “Despite DHA’s advocacy for tariffs on hardwood plywood, engineered wood flooring and hardwood veneer imports, these products were not included in the first round. But, the announcement includes a procedure for adding more wood products.”
According to Christman, subsidized plywood from Asia that has been “dumped” in the U.S. market has negatively impacted U.S. manufacturing facilities and eliminating thousands of jobs in rural communities around the country. He cited the recent closure of the Roseburg Forest Products hardwood plywood mill in Springfield, Ore., as another wake-up call that underscores the need for tariffs to prevent dumped and subsidized plywood from Asia. DHA estimates underpriced plywood from Asia represents 80% of the U.S. market.
While Section 232 will be subject to ongoing review, DHA believes the separate reciprocal tariffs are a step in the right direction. “It’s some comfort that the reciprocal tariffs now apply to these products, but the rates are not high enough to level the playing field,” Christman said. “And these reciprocal tariffs could go away with the upcoming Supreme Court decision.”
Earlier this year, a U.S. Appeals Court ruled Trump’s reciprocal tariffs were unlawful, but stopped short of issuing an injunction. The U.S. Supreme Courtis expected to hear arguments next month. In the meantime, the proposed tariffs will remain in place.
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