The United States will pause all reciprocal tariffs announced during last week’s ‘liberation day tariffs’ – for at least another 90 days – except China, which will now be subject to 125% tariffs.
The U-turn on tariffs (again) comes after President Trump told reporters during a session that “some folks” were getting spooked by the new rules:
“People were jumping a little bit out of line,” Trump said. “They were getting a little bit yippy, a little bit afraid.”
It comes after Wood Central revealed that the European Union vowed to impose tariffs of up to 25% on a range of US imports—including wood products—in May and December after Trump vowed to hit the 27-member bloc with 20% tariffs on most of its products (now reduced to 10%).
On Wednesday, Wood Central reported that although the Chinese tariffs do not apply to primary and secondary wooden products (with all HTSUS 44 coded products exempt from the Executive Order signed last week), Wood Central understands that will be targeted as part of a separate national security probe that will be published in the next few weeks.
Earlier this week, Wood Central reported that vast volumes of timbers—imported into China (and Vietnam) worldwide—are manufactured into finished furniture, cabinetry, doors, and other interior products (many of which are not exempt from the new tariffs).
According to Rudolf van Rensburg, a director at Margules Groome Consulting who spoke to Wood Central last week, the tariff ramp up will nonetheless have major implications for China’s furniture industry, which imports massive volumes of hardwoods from all over the world.
“China imported 10.11 million cubic metres of non-coniferous (hardwood) lumber in 2024, at an average price of US $344 per cubic metre,” he said, referencing a new Margules Groome’s publication, adding that the furniture and interior decoration sector is the primary consumer of these hardwood imports.
“China’s furniture industry depends on high-quality imported hardwoods, both tropical and temperate, for manufacturing furniture, flooring, cabinetry, and other interior wood products,” he said, adding that US-sourced hardwoods (now suspended at port) are also valued for veneer and solid wood applications in high-end furniture. “This segment alone is estimated to account for 15% of China’s total wood use by volume.”
- To learn more about the impact of Donald Trump’s tariff plan on global timber prices, click here for Wood Central’s special feature.
