Trump Vows To Impose New Tariffs On Canada, Mexico & China
President-elect Trump is shaking up the status quo with dramatic policy and personnel announcements. His recent announcements of 25% tariffs on goods from Canada and Mexico and an additional 10% on goods from China will affect our industry. While many in our industry would welcome additional tariffs on imports from China, the situation with Canada is a little less clear. Hardwoods harvested in the U.S. are often spliced in Canada before being exported to the U.S. We will watch the Canada issue closely and continue talks with members and allies.
Speaking of trade, U.S. imports of hardwood plywood continue to increase despite soft markets such as cabinets. Imports from Vietnam and Indonesia have grown rapidly in 2024.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
Decorative Hardwoods Association
PHOTO © US CUSTOMS AND BORDER PROTECTION
President-elect Trump has threatened to impose a 25% tariff on all products entering the U.S. from Canada and Mexico as one of his first executive orders, designed to force Canada and Mexico to address illegal immigration and the flow of fentanyl across U.S. borders. Canadian Prime Minister Trudeau already met with Trump to discuss the issue. Trump has also proposed an additional 10% tariff on imports from China.
PHOTO © US CUSTOMS AND BORDER PROTECTION
President-elect Trump has chosen Jamieson Greer as the U.S. Trade Representative, stating that "Jamieson will focus the Office of the U.S. Trade Representative on reining in the Country’s massive Trade Deficit, defending American Manufacturing, Agriculture, and Services, and opening up Export Markets everywhere." Greer served as chief of staff at the USTR under Lighthizer
Sales of cabinets continued to fall in October. Sales volume was down 13.3% in October 2024 vs. October 2023. The volume of cabinet sales has fallen by 6% year-to-date, while the dollar value fell by 2.8% year-to-date.
The Hardwood Federation is assessing how the return of the Trump administration will affect trade and exports, particularly U.S. exports to China. Many in the industry remember the effect of retaliatory tariffs imposed by China on U.S. lumber and are concerned about how a new round of tariffs will impact hardwood lumber and log exports, while benefitting hardwood plywood and engineered wood flooring.
PHOTO © JERRY GLASER
The U.S. Senate Energy and Natural Resources Committee approved more than 70 bills focusing on land use, including a revised version of the industry-supported Promoting Effective Forest Management Act. The revision cut a provision that could stop plans to expand old growth and supports ambitious forest thinning projects.
U.S. lawmakers are likely to use budget reconciliation to allow tax legislation to move onto the Senate floor with a simple majority vote, bypassing the 60-vote hurdle applied to most laws. Legislators will focus on extending provisions of the 2017 tax law that are set to expire at the end of 2025, including estate tax flexibility and small business deductions, which are priorities of the hardwood industry.
Hardwood plywood imports continue to grow rapidly in 2024 despite soft U.S. markets. The value of U.S. imports from Vietnam rose by nearly 60% year-to-date through September while volume grew by more than 88%. Imports from Indonesia grew by more than 20% in value and volume.
At the 10th International Hardwood Conference, the European Timber Trade Federation outlined the challenges hardwood businesses have faced. The big question is whether the market has bottomed out and if 2025 will be the year of recovery. Hardwood businesses are facing an uphill battle due to higher costs for energy, personnel, and equipment.
Two major cabinetmakers, both operating under MasterBrand Cabinetry, plan to close their North Carolina manufacturing facilities next year. More than 270 employees will be laid off. Dura Supreme Cabinetry will close its Statesville facility in January. UltraCraft Cabinetry will close its Liberty plant later in 2025. MasterBrand acquired Dura Supreme and Bertch Cabinet earlier this year.
PHOTO © IREDELL EDC
Capital Testing has expanded its scope of ISO/IEC 17025 accreditation to include the ISO 4918 Caster chair test for flooring. ISO 4918 is the primary European method for determining the effect of repeated caster chair movement on the appearance and stability of a resilient, textile, or laminate floor covering. Find out more on the Capital Testing website or contact Patrick Dwyer to request a quote.
The Notre Dame Cathedral's entire 800-year-old oak roof went up in flames in 2019. It has since been rebuilt by a unique group of skilled carpenters using traditional methods of oak framing and woodwork.
PHOTO © MIKE DENNIS
The Oregon Department of Forestry recently finished the Santiam State Forest reforestation project after devastating wildfires in 2020. The department successfully planted 2.3 million seedlings in that time, about ten times more than usual, with no additional staff.
The Sustainable Furnishings Council and National Wildlife Federation have announced the 2024 Wood Furniture Scorecard's top retailers. The Scorecard is a critical benchmark for retailers who are committed to reducing deforestation and implementing responsible forest management in their supply chains.
The forest products industry is a critical part of the U.S. economy. How many jobs does the forest products industry support and what percent of GDP does it contribute?
Answer: Forest products account for about four percent of total U.S. manufacturing GDP, producing nearly $300 billion in finished products. The industry supports 685,000 jobs, most of which are solidly middle class and in parts of the country where career options are scarce.
PHOTO © ROSEBURG