DHA eNews – Trump Announces Plan For Reciprocal Tariffs
Over the last two weeks, the Trump administration has continued rapidly executing its game plan for the first 100 days. In our last newsletter, we highlighted the tariff actions on Canada, Mexico, and China that resulted in a pause for Canada and Mexico. In this newsletter, we cover the reciprocal tariff announcement that would match tariffs and other barriers to those of U.S. trading partners. Details are still being developed. DHA will follow this and the Canada actions closely.
In addition, the Trump administration issued the Unleashing Prosperity Through Deregulation executive order. After the last four years of heavy regulation, the new requirement to eliminate ten regulations for every new rule and to ensure that regulatory costs are negative is a welcome change.
While DHA continues to advocate for our industry, we also promote our products. The latest is a new column in Surface & Panel highlighting the natural aesthetics and versatility of decorative hardwoods.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
On February 13, President Trump signed a memorandum ordering the development of a comprehensive plan "for restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements." According to the White House, the plan would equalize U.S. tariffs to those of trading partners and consider non-tariff barriers as well as value-added taxes imposed on imports from the U.S.
In this quarter's design-focused Surface & Panel magazine, DHA highlights the natural aesthetics and versatility of hardwood plywood, hardwood veneer, and engineered wood flooring in our quarterly column. In addition to the feature in Surface & Panel, the North American Building Material Distribution Association requested permission to feature the article and will publish it on their Channel Connection website, Hub & Spoke website, and in their monthly newsletter.
On January 31, President Trump issued the Unleashing Prosperity Through Deregulation executive order. The aggressive executive order includes a requirement that for each new regulation issued, at least ten prior regulations must be eliminated, and imposes a "significantly less than zero" incremental cost cap for all new regulations.
The new budget resolution passed by the House of Representatives Budget Committee includes a minimum of $1.5 trillion in spending cuts across committees, with a target of $2 trillion; a $4.5 trillion cap on the deficit impact of the plan to extend the 2017 tax cuts; and an incremental $300 billion for the border and defense. The resolution increases the debt limit by $4 trillion. The resolution still needs to pass in the House of Representatives.
In the most recent development on the Corporate Transparency Act, the regulation that requires small businesses to report the personal information of their owners and managers to the Financial Crimes Enforcement Network (FinCEN), the House passed a bill to delay the filing deadline for most businesses until January 1, 2026. Meanwhile, in federal court, reporting is back in effect—for now.
3,400 staffers have been let go at the U.S Forest Service, about 10% of the total USFS workforce. Firefighters and other public safety officials are exempt from the cuts.
The Hardwood Federation continues to inform members of Congress about the potential impact of retaliatory tariffs on the hardwood industry. In these talks, lawmakers noted that they are considering providing relief to the agricultural sector, including the forestry industry, but where those funds will come from is not yet known.
The American Hardwood Export Council receives funding from the U.S. Department of Agriculture. These funds are being held pending a review of the export assistance programs by the Trump administration. AHEC was forced to postpone its American Hardwood Convention in China and cancel the IndiaWood trade show.
Effective immediately, the Trump administration shut down the $800 de minimis exemption for Chinese imports. Now, all imports from China, no matter how small the amount, must enter the U.S. through standard customs procedures, submit full import documentation, and pay applicable duties and taxes.
In 2024, U.S. imports of wooden furniture grew by 7% to a total of more than $21 billion. The driver: imports from Vietnam, which grew by 21%. Vietnam accounted for more than one-third of all imports of wooden furniture into the U.S. last year.
In 2023, Missouri lawmakers set up the Missouri Hardwood Forest Product Promotion Fund to promote real wood over lookalike products. The Missouri Forest Products Association has been investing those funds to raise awareness of real wood through the ChooseWood campaign.
Congratulations to DHA member Raute Corporation, whose 2024 net sales increased by more than 40% to €204.6 million. Growth was a result of steady progress in wood processing projects and Raute's services business. Europe accounted for 56% of net sales, followed by North America at 22% and South America at 19%.
Some might think that a state government's plan that has already harvested 200,000 trees, with millions more to come, could signal an environmental disaster. However, this seemingly drastic approach to forest restoration is already preventing catastrophic wildfires, revitalizing fragile ecosystems, and turning homogenous forests into flourishing habitats for plants and wildlife.
Lawmakers recently introduced the bipartisan Forest Data Modernization Act to modernize the U.S. Forest Service's Forest Inventory and Analysis program to ensure reliable data for better decision-making. The bill would require the Forest Service to prepare an updated strategic plan to expand data collection and further integrate advanced remote sensing technology.
What animal is helping researchers identify oak trees infected with the invasive pathogen that causes sudden oak death?