NEWS

We certainly live in interesting and challenging times. President Trump recently announced tariffs on imports from Canada, Mexico, and China. He also mentioned the possibility of sanctions on Russia related to the invasion of Ukraine.

DHA strongly supports efforts to strengthen and grow U.S. manufacturing and prevent further damage from the unfair trade practices of China and its allies in Asia. In addition, DHA supports restrictions on wood products manufactured from Russian wood and imported from third countries.

Canada is a vital part of the U.S. supply chain for decorative hardwoods. Thus, DHA sent a letter to the Trump administration to request that hardwood plywood, veneer, and engineered wood flooring manufactured in Canada be exempted from any potential tariffs on imports from Canada. Fortunately, tariffs on imports from Canada and Mexico have been paused for a month after Canada and Mexico agreed to enhance border enforcement. DHA will stay on top of this important issue.

Other policy issues are also very active, including tax and regulatory policy. DHA recently joined allies to advocate to repeal the death tax and stop EPA's use of a flawed risk analysis in regulations.

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

Keith A. Christman, President

On February 1, President Trump announced broad tariffs of 25% on imports from Canada and Mexico and 10% on oil from Canada. These tariffs appear to include hardwood plywood, veneer, and engineered wood flooring. Per a White House fact sheet, these actions and the 10% tariffs on imports from China were meant to incentivize action by these countries on fentanyl and illegal immigration. After Canada and Mexico agreed to enhanced border safeguards, President Trump agreed to a one-month pause in the tariffs on imports from Canada and Mexico.

Canada had announced retaliatory 25% tariffs on $155 billion of U.S. products. The first phase of these countermeasures would have become effective on February 4. These tariffs specifically include many hardwood products, including hardwood veneer. The tariffs would apply to products under the identified HTS codes whose country of origin is the U.S. based on USMCA marking rules.

On January 29, DHA sent a letter to the Trump administration requesting that hardwood plywood, veneer, and engineered wood flooring be exempted from the 25% tariffs on imports from Canada. The Canadian decorative hardwoods industry is highly integrated with partners in the U.S. In the same letter, DHA strongly supported tariffs on imports from China and recommended extending the tariffs on imports from Russia to a ban on Russian wood from third countries.

As California wildfires raged, the U.S. House of Representatives overwhelmingly passed the bipartisan Fix Our Forests Act. The bill is a comprehensive package that will encourage active forest management and support community resiliency to wildfires by expediting environmental analyses, reducing frivolous lawsuits, and increasing the pace and scale of forest restoration projects.

The EPA’s Integrated Risk Information System (IRIS) program has been increasingly used to develop overly burdensome regulations for products we use every day. IRIS fails to adequately incorporate high-quality and relevant science and does not consistently use a "weight of the scientific evidence" approach. EPA recently issued its final risk evaluation for formaldehyde under the Toxic Substances Control Act (TSCA) based on a flawed IRIS assessment.

DHA recently signed a letter to members of the House of Representatives and the Senate supporting the Death Tax Repeal Act of 2025. Exemption limits on the estate tax in recent years represent significant relief to family-owned businesses. Without Congressional action, however, the temporary increase in the estate tax exemption amount will expire at the end of 2025, increasing uncertainty and business planning costs.

A bipartisan bill, "Restoring Trade Fairness Act," introduced in the House, would revoke China's Permanent Normal Trade Relations status. That status effectively classifies China as a free trade partner. The bill would revoke many of the low tariff rates China currently enjoys and create a minimum 35% tariff on the value of non-strategic goods and a minimum 100% tariff on the value of strategic goods. If passed, the new tariffs would be phased in over five years.

The National Association of Home Builders urged the current administration to exempt building materials from the proposed tariffs on Canada and Mexico as the tariffs are expected to drive up the price of housing. NAHB stated that tariffs on lumber and building materials increase the cost of construction and discourage new development and that consumers will pay for the tariffs in the form of higher home prices.

An undercover investigation by Earthsight revealed that more than $1.5 billion of Russian birch plywood has been laundered and illegally imported into the EU. Investigators found that large quantities of Russian plywood are being smuggled into numerous EU countries and that efforts to stop the flow of illegal plywood have been "woefully inadequate."

A subsidiary of Home Depot, Construction Resources Company, has acquired Bell Cabinetry. Based in Atlanta, Bell Cabinetry manufactures, designs, and installs cabinets.

Cabinet sales struggled throughout 2024, ending the year down by 7.1%. The dollar value of sales fell by 3.4%. December sales were down by 15% vs December 2023.

Popular website Houzz surveyed more than 1,600 respondents in its 2025 Kitchen Trends Study to identify the latest trends in kitchen remodeling and design. The survey showed that more than one-third of homeowners increase the size of their kitchens during a renovation. Traditional style and white cabinets are among the top trends for this year.

Forest Service officials in Arizona stated that uncertainty over budgets has effectively stalled its efforts to thin forests to reduce the risk of wildfires. The Forest Service had already imposed a hiring freeze before the congressional budgeting process fell apart.

Maine received $22 million in federal funds to support the development of sustainable products made from wood. The grant will help advance innovation in the state's forestry industry through the Forest Bioproducts Advanced Manufacturing Tech Hub, a consortium founded by the Governor's Office of Policy Innovation and the Future and the Maine Technology Institute.

What Tasmanian tree is in the “gigantism hotspot” and grows to 100 meters tall? It’s the sixth-tallest tree in the world. Which species of trees are taller?