The following was taken in part from the NCBFAA and International Trade Today:

In a proclamation on Monday evening, September 29th, President Trump announced the implementation of Section 232 tariffs for lumber, kitchen cabinets and vanities, and other wood products to take effect on October 14th at 12:01 AM EDT.

The rates of duty established in this proclamation shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 AM EDT on October 14th, the proclamation said. Specifically, the tariffs include:

• 10% global tariff on imports of softwood lumber
• 25% global tariff on certain upholstered furniture, which will increase to 30% on January 1st
• 25% global tariff on kitchen cabinets and vanities, which will increase to 50% on January 1st

“The United Kingdom, the European Union, and Japan will enjoy more favorable treatment that reflects the terms of their trade deals with the United States,” the Trump administration said.

The Section 232 tariff on subject wood imports from the United Kingdom will not exceed 10%, while the combined Section 232 tariff and most-favored nation tariff on subject wood imports from the European Union and Japan will not exceed 15%.

“Products that are not subject to these Section 232 tariffs will generally be subject instead to reciprocal tariffs,” the Trump administration said, adding that the treatment of products on the list of Potential Tariff Adjustments for Aligned Partners (PTAAP) “remains unchanged unless an antidumping or countervailing duty order applies.”

Goods subject to these Section 232 tariffs on “timber, lumber, and their derivative products” won’t be subject to reciprocal tariffs, the additional 40% International Emergency Economic Powers Act tariffs imposed on Brazil, or additional 25% IEEPA tariffs imposed on India for its imports of Russian oil.

Goods subject to both these tariffs and the Section 232 tariffs on autos and auto parts will only be subject to the tariffs on autos and auto parts. Goods subject to both these tariffs and the IEEPA tariffs on Canada and Mexico will only be subject to these Section 232 timber and lumber tariffs.

Trading partners who negotiate with the US to address the threat of wood imports to the national security of the US may be able to secure an alternative to the pending tariff increases, according to the White House.

The proclamation provides an annex listing the tariff subheadings subject to the increased tariffs. However, the proclamation also removes over 150 tariff subheadings in Chapter 44 from the “Annex II” list of goods exempt from reciprocal tariffs, effective October 14th. The entire proclamation is available to read for more details.

On January 1st, the tariffs on upholstered furniture will increase to 30%, and on wooden cabinets and vanities to 50%, “except for countries with which the United States reaches an agreement that addresses the threatened impairment of the national security posed by imports of wood products.” RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any further questions.