U.S. Tariffs on Lumber, Upholstered Furniture & Related Imports (Tariff Increase Delayed)

Published Sept. 30, 2025 | Updated Jan. 2, 2026

Key Points

• Latest Update: U.S. tariff increases on certain wood products, including upholstered furniture, kitchen cabinets, and vanities, have been postponed until January 1, 2027.
• A 25% tariff applies to upholstered wooden furniture and will increase to a 30% tariff on January 1, 2026. A 25% tariff applies to kitchen cabinets/vanities, and will increase to a 50% tariff on January 1, 2026. Note: These increases will not impact the previous tariff agreements for Japan, EU, UK, and Korea.
• President Donald J. Trump has signed a proclamation imposing Section 232 tariffs on imports of softwood timber, lumber, and derivative products starting October 14, 2025.
• A 10% tariff applies to softwood timber and lumber imports.
• Special tariff caps are set for the UK (10%) and for EU/Japan (15%).
• Goods subject to these tariffs will not be subject to reciprocal tariffs, International Emergency Economic Powers Act (IEEPA) tariffs on Brazil or India, or certain other overlapping tariffs.
• Drawback (refund of duties on re-exported goods) will be available, with imports processed through foreign-trade zones from October 14 subject to “privileged foreign” status.
• Ongoing negotiations with trade partners may lead to adjustments or exemptions.

On September 29, 2025, President Donald J. Trump signed a proclamation imposing Section 232 tariffs on timber, lumber, and derivative wood products, effective October 14, 2025, with detailed tariff classifications outlined in the Lumber and Timber 232 Annex. A 25% tariff was set for upholstered wooden furniture and kitchen cabinets/vanities, scheduled to increase to 30% and 50%, respectively, on January 1, 2026, targeting imports from countries without prior agreements. This action aims to protect U.S. national security, addressing concerns about the impact of imports on the domestic wood industry and critical supply chains.

Latest Update (Increased Tariffs Delayed)

On December 31, 2025, President Trump signed a proclamation delaying tariff increases on imported wood products, including upholstered furniture, kitchen cabinets, and vanities. The previous increases scheduled for January 1, 2026 are now postponed, and the current 25% tariffs remain in effect through 2026.

The delay allows continued negotiations with trading partners to address national security concerns related to U.S. reliance on foreign timber and lumber. Tariff rates are now set to increase on January 1, 2027, unless agreements are reached sooner:

• Upholstered furniture: 25% until 2027, then 30%
  
• Kitchen cabinets and vanities: 25% until 2027, then 50%
  

Previous Updates

U.S. Customs and Border Protection (CBP) has issued CSMS #66492057, providing formal guidance on the implementation of Proclamation 10976, “Adjusting Imports of Timber, Lumber, and Their Derivative Products into the United States” (September 29, 2025). The Section 232 tariffs impose specific duties on softwood timber, lumber, and related wood products with tariff rates and application dates outlined below.

• Softwood Timber and Lumber (HTSUS 4403–4407) — 10% additional duty (9903.76.01)

• Upholstered Wooden Furniture (HTSUS 9401) — 25% duty for all countries except the UK, EU Member States, and Japan (9903.76.02) – starting October 14, rising to 30% on January 1, 2026.

• Completed Kitchen Cabinets, Vanities, and Parts (HTSUS 9403) — 25% duty for all countries except the UK, EU Member States, and Japan (9903.76.03), rising to 50% on January 1, 2026.

• Other Than Completed Kitchen Cabinets and Vanities and Their Parts (HTSUS 9403.40.9060; 9403.60.8093; 9403.91.0080) — 0% additional ad valorem duty (9903.76.04)

• The tariff increase that applies to upholstered wooden furniture and kitchen cabinets/vanities will not impact the previous tariff agreements for Japan, EU, UK, and Korea.

• Reduced Rates for UK, EU, and Japan — Duties apply to upholstered wooden furniture products and completed kitchen cabinets/vanities and their parts under the following headings:

  • United Kingdom (9903.76.20) — 10% additional ad valorem duty

  • Japan (9903.76.21) — 15% additional ad valorem duty

  • European Union Member Countries (9903.76.22) — 15% additional ad valorem duty

• Tariffs apply to imports classified under specific HTSUS codes (detailed in the Annex).

CBP guidance confirms that timber and lumber products subject to new Section 232 duties are exempt from overlapping tariffs imposed under other Executive Orders issued pursuant to the International Emergency Economic Powers Act (IEEPA), including reciprocal tariffs (EO 14257) and tariffs targeting Canada, Mexico, Brazil, and India. Goods already covered by automobile-related Section 232 duties (Proclamation 10908) are also exempt.

Importers seeking IEEPA-related tariff exemptions must declare the correct Chapter 99 HTSUS provisions (e.g., 9903.01.33, 9903.01.83, or 9903.01.87) to ensure accurate duty treatment.

Additionally, 158 Chapter 44 subheadings have been removed from the list of Annex II Reciprocal exceptions under EO 14257, making these wood-related products newly subject to reciprocal tariffs effective October 14, 2025.

Drawback remains available under 19 C.F.R. Part 190, while products entered into foreign trade zones must be admitted under privileged foreign status (19 C.F.R. 146.41).

➡️ Read the full CBP guidance (CSMS #66492057) for complete details.

Special Provisions

• Tariffs on imports from the United Kingdom are capped at a maximum of 10% above the Most Favored Nation (MFN) rate, while tariffs on imports from the European Union and Japan are capped at a combined rate of 15%, inclusive of MFN rates.
• Drawback Availability: Drawback provisions will be available for these tariffs; however, any goods subject to the tariffs that are admitted into a U.S. foreign-trade zone (FTZ) on or after October 14, 2025, must be entered under “privileged foreign status.

Tariff Exceptions

• Products subject to these tariffs are exempt from duties imposed by Executive Orders 14257 (April 2025, trade deficits), 14323 (July 2025, Brazil), 14329 (August 2025, Russia), and others to avoid overlapping tariffs.
• For wood products also covered under Proclamation 10908 (automobiles and parts), those Proclamation 10908 duties apply instead.
• Notably, the tariffs do not apply to pharmaceutical companies that have established manufacturing facilities in the U.S., part of a separate set of tariff exemptions.
• The proclamation also removes over 150 tariff subheadings in Chapter 44 of the Harmonized Tariff Schedule of the United States (HTSUS) from the list of goods exempt from reciprocal tariffs, effective October 14, 2025

Implementation and Monitoring

Tariffs on imports entered or withdrawn from warehouse on or after October 14, 2025, will be subject to the new Section 232 duties. The Secretary of Commerce will monitor import levels and domestic industry conditions, providing a report by October 1, 2026, to determine if further duties on hardwood timber, lumber, or derivatives are warranted. Additionally, the Secretary may expand the tariff list by adding wood products based on import trends and national security considerations.

The proclamation also includes a provision authorizing the Secretary of Commerce to impose specific, compound, or mixed tariffs if there is a finding of undervaluation risk for any particular class of imported wood products. In such cases, these alternative tariff forms will be applied at rates intended to approximate the ad valorem duty rates set under Section 232 for the same articles.

Background

The Section 232 tariffs follow a comprehensive investigation initiated by the Department of Commerce in early 2025. The Secretary of Commerce found that current import levels and unfair trade practices are weakening the domestic wood processing industry, causing mill closures, job losses, and underutilized production capacity.

These conditions increase U.S. dependence on foreign suppliers for materials critical to military infrastructure, munitions manufacturing, missile defense, and vital infrastructure sectors such as energy and transportation.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.