January 23, 2025

DHA eNews – No New Tariffs On Day One

DHA Insights: January 23, 2025

Washington policymaking is hitting overdrive with a flurry of executive orders. The Wall Street Journal reported that President Trump will not impose any new tariffs yet and instead issued a memo directing federal agencies to evaluate trade policies and economic relationships. Our industry has had to fight illegal trade from China and Vietnam in recent years. We look forward to working with the new administration on illegal trade practices.

But, our industry is also integrated with our partners in Canada, particularly veneer splicers and hardwood plywood manufacturers. We will be working with the administration to grow U.S. manufacturing of decorative hardwoods and leveraging our important partnerships in Canada so that we can grow together.

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

Keith A. Christman, President
Keith A. Christman, President
Decorative Hardwoods Association

No New Tariffs On Day One

The Wall Street Journal reported that there will be no new tariffs imposed on the first days of the new administration. Instead, President Trump directed federal agencies to evaluate trade policies and economic relationships with China, Canada, and other countries. He also directed federal agencies to address U.S. trade deficits and confront what he called unfair trade and currency policies by other countries. The new administration wants to address trade policies "in a measured way," a senior policy adviser said.
 

U.S. Hardwood Plywood Imports From Asia Surge Again

In 2024, the value of hardwood plywood imports rose by nearly 15% through November. The value of imports from Vietnam soared by nearly 42% and from Indonesia by more than 17%. The total volume of imports into the U.S. remained flat, but imports from Vietnam were up by nearly 63% and imports from Indonesia rose by 21%.
 

How The Death Tax Hurts Family Businesses

DHA partner, the Family Business Council, testified at the House Ways and Means Committee about why it is important to extend the Tax Cuts and Jobs Act permanently and end the death tax: the taxes levied on a deceased's estate. The testimony highlighted the difficulty of passing a family business to the next generation and the heavy burden of the death tax on family businesses, from the costs of compliance to the cost of the tax. 
 

Congress Reintroduces Bipartisan Fix Our Forests Act

Last week, legislators from Arkansas and California reintroduced the bipartisan Fix Our Forests Act. The swift reintroduction highlights the urgent need to improve forest management to mitigate fire risks. The full House is scheduled to address the legislation quickly, in part as a response to the California wildfires. A Senate version of the bill is expected to be introduced in the next few weeks. Last year, the House passed the Fix Our Forests Act in September with bipartisan support.
 

USDA Withdraws National Old Growth Amendment

USDA announced that it will withdraw the National Old Growth Amendment Draft Environmental Impact Statement (EIS). The EIS would have amended federal forest management plans to provide directions on preserving older and old-growth forests across the national forest system. The withdrawal of the EIS is a significant victory for the forest industry, as it would have slowed timber management on federal lands until forest plans were revised.

Corporate Transparency Act Is Still In The Courts

In December, a federal court issued a nationwide injunction to suspend enforcement of disclosure requirements under the Corporate Transparency Act. The law requires small businesses to report the personal information of their owners and managers to FinCEN at the Treasury Department. On December 23, another court overruled the injunction, which was then reinstated on December 27. The U.S. government appealed to the Supreme Court to reinstate the filing requirements, creating more uncertainty.

As of today, beneficial ownership reporting requirements are paused and enforcement is suspended until further notice.

Industry Opposes Federal Heat Standard

DHA supports the Forest Resources Association's comments on the Department of Labor's proposed rule for Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings. The nearly 400-page rule would provide a burdensome national standard for employers to address heat-related illness in the workplace. FRA urged the agency to allow states to develop heat standards that are more appropriate for their region.

U.S. Imports Of Tropical Veneer Plunge

U.S. imports of tropical hardwood veneer plunged by 22% in November to their lowest level since February. Imports in November 2024 were 41% lower than in November 2023. Imports from Cote d’Ivoire fell by 72% to a two-year low. Imports from Ghana dropped by 86% while imports from China fell by 96%. Through November 2024, total imports of tropical hardwood veneer fell by 18% vs. the prior year.

Imports Of Hardwood Flooring Climb

U.S. imports of hardwood flooring grew by 24% in November with strong gains in imports from Malaysia and Brazil. November's imports were 14% higher than November 2023. Total imports of hardwood flooring fell by 11% through November vs. the same period in 2023. Imports of assembled flooring panels dropped by 5% but were still well ahead of 2023's pace. Imports for November reached nearly $31 million, 24% higher than the previous November. In 2024, total imports of assembled flooring panels grew by 36% through November vs. prior year.

The Kitchen & Bath Industry Is Facing A Skilled-Labor Shortage

A nationwide study by the National Kitchen & Bath Association documented a significant skilled labor shortage. As a result, some design and remodeling firms have been forced to hire workers who are less qualified or less experienced to meet their staffing needs. The consensus among businesses was that the skilled labor shortage has risen sharply over the past five years.

Washington Stops Logging Sales In Older Forests

The new Washington State public lands commissioner has paused logging sales in some older state-managed forests. The pause, with an expected duration of about six months, is a step toward fulfilling a campaign promise to set aside about 80,000 acres of older trees.

Missouri Works To Save White Oaks

U.S. foresters asked private landowners to help save white oaks. Missourians stepped right up. More than 40 people signed up to help the University of Missouri Extension and the state's Department of Conservation plant and raise white oak tree seedlings. The project is a part of the White Oak Initiative that spans 15 states.

Browntail Moth Caterpillars Decline In Maine

Good news: recent surveys show that Maine's population of browntail moth caterpillars has dramatically declined. The moths appear every ten to fifteen years (2025 marks year ten) and infest oak, birch, cherry, and other hardwood trees.

Core Inflation Rate Slows To 3.2%, Lower Than Expected
Job Market Delivers A Solid Performance
U.S. Housing Starts Skyrocket To Ten-Month High
Housing Starts End 2024 On A High Note
Single-Family Permits Increase
Price Growth Of Residential Construction Inputs Slows
Remodeling Market Sentiment Improves In Q4
Builder Confidence Edges Up, But So Do Market Risk Concerns
Housing Inflation Moderates Amid Higher Energy Costs
Expect A Slowdown In Household Growth & Housing Demand
Canada's Home Insurance Rates Are Likely To Spike Due To Severe Weather
Wood Trivia: Test Your Knowledge

What country is building the world's largest city that is made entirely of timber?

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