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US NO LONGER RAISING TARIFFS ON WOOD PRODUCTS

DUTIES ON LUMBER & WOOD CABINETS/VANITIES WERE TO DOUBLE - BUT NOT ANYMORE!

A recent last-minute announcement by the United States (US) government that it will NOT proceed with increasing certain tariffs is just the latest demonstration of how fluid and uncertain the US tariff situation is.  Happily, it provides some relief to Canadian exporters of kitchen cabinets, bathroom vanities, and other wood products.  It may imply more good news is to follow, but it certainly shows how hectic the tariff situation is for Canadian exporters to the US.

Further detail below.

The Good News

On October 14, 2025, the US imposed still-current Section 232 tariffs on Canadian (and other nations’) softwood lumber and various wood products (the “Wood Tariffs”).  It set tariffs on kitchen cabinets and their parts, bathroom vanities and their parts, and certain wooden upholstered goods and their parts, at 25%.  It also set tariffs on many types of raw wood at 10% (on top of the anti-dumping and countervailing duties that already apply to raw lumber).

While that order remains in effect, on December 31^st, 2025 the US announced that it would not increase those tariffs in 2026, contrary to the original order which stated that those tariffs would dramatically increase – in many cases, doubling – on January 1, 2026.

The Bad News

The Wood Tariffs do, unfortunately, remain in effect, and they are harsh.

Unlike many other US tariffs, the Wood Tariffs are broadly worded and apply to essentially all goods in the categories they target.  In other words, while many other US tariffs include many carveouts and caveats that reduce their ultimate impact, the Wood Tariffs do not. They list several HS Tariff Classification Codes (“HS Codes”) and essentially all goods imported under those HS Codes are impacted by the Wood Tariffs.

Most prominently, while many of the recent US tariffs exempt goods that are protected under the Canada-US-Mexico Agreement (CUSMA), the Wood Tariffs explicitly bypass CUSMA (and many other US free trade agreements) to apply to CUSMA-compliant goods.  

Implications for Canadian Businesses

This latest last-minute change is further demonstration of how unpredictable, confusing, and fluid the US tariff situation is.  Consulting Experienced Customs Counsel is likely necessary to ensure compliance and to avoid expensive errors.  With the rules often changing (literally) from one day to the next, businesses exporting to the US face uncertainty and risk when they go it alone.   

On a (potentially) happier note, this change may signal that Trump is more broadly relaxing his approach to tariffs going forward.  It remains to be seen if more moves like this will follow, but even Trump-friendly commentators seem to think they may, in response to concerns about affordability and rising prices in the US.

Takeaways

The planned January 1, 2026, US tariff increase on various wood goods will not happen after all.  Canadian exporters of kitchen cabinet, bathroom vanities, and various other wood goods can breathe a (small) sigh of relief.

It may be a sign that further tariff relief will follow.  However, it is also a demonstration of the unpredictable tariff landscape Canadian exporters to the US currently face.  Experienced Customs Counsel can help navigate that landscape.

For help with US Tariffs on Wood/Cabinet products, please click here.

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