The United States will slap astonishing tariffs of between 104 and 125% on Chinese imports from today, escalating the budding trade war between the two largest markets. That is according to Karoline Leavitt, White House press secretary, who doubled down on Trump’s reciprocal tariff policies announced last week.
“Countries like China, which have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake. President Trump has a spine of steel, and he will not break. The Chinese want to make a deal but don’t know how to do it.”
Karoline Leavitt, White House press secretary, speaking to reporters earlier today.
The increase comes after Beijing “didn’t back off” from its promise to impose 34% tariffs on US imports from today, with China’s Commerce Ministry earlier today saying it “firmly opposes” the tariffs on Chinese imports, calling it “a mistake upon a mistake.”
As it stands, more than $2 billion worth of timber products are traded from China into the United States every year – making it the second most important market after Canada ($11.588 billion) for lumber, plywood, MDF and other finished products, including furniture.
And whilst Wood Central understands that current tariffs exempt the vast majority of primary and secondary timber products, the administration is nonetheless looking to ramp up duties on 44 HS goods as part of a national security probe into lumber in a matter of weeks.
Last week, Wood Central spoke to Rudolf van Rensburg, director of Margules Groome Consulting, who said tariffs would have major implications for China’s booming furniture industry, which imports vast volumes of hardwoods worldwide.
“China imported 10.11 million cubic metres of non-coniferous (hardwood) lumber in 2024, at an average price of US $344 per cubic metre,” according to Margules Groome’s recent publication, adding that the furniture and interior decoration sector is the primary consumer of these hardwood imports.
“China’s vast furniture industry depends on high-quality imported hardwoods, both tropical (e.g., teak, meranti) and temperate (e.g., oak, ash, walnut), for manufacturing furniture, flooring, cabinetry, and other interior wood products,” they said, adding that US-sourced hardwoods (which are now suspended at port) are 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.”
“The introduction of US tariffs on lumber and related products is expected to create complex knock-on effects across supply chains. China’s reliance on US hardwoods and imports from other regions that may also face indirect impacts could lead to cost increases, supply disruptions, and sourcing shifts. The full ramifications of these changes will only become clear over time as manufacturers adapt and global trade patterns respond to evolving policies.”
- To learn more about the impact of Donald Trump’s tariff plan on global timber prices, click here for Wood Central’s special feature.
