Trump Imposes 10% Tariff on Lumber, but Cabinets Processed with Lumber Imported from the U.S. Are Exempt

On Monday, President Donald Trump ordered the imposition of new high tariffs on lumber and various wood products, including imported lumber, timber, kitchen cabinets, and upholstered furniture. However, there is a way to exempt cabinets from these tariffs to avoid the policy impacting cabinet prices.

Specifically, if lumber is imported from the U.S. to Vietnam, processed into kitchen cabinets or bathroom vanities there, and then re-imported into the U.S., the resulting cabinets will be exempt from the tariff. As a supplier, our OAK lumber is imported from the U.S. for processing. Although the price of oak itself is higher than that of other engineered wood, when factoring in the additional tariffs, cabinets made from oak are currently more cost-effective.

It is further stated in this proclamation that these tariff rates will take effect on October 14. On January 1, Trump will raise the tariff on cabinets to 50% and the tariff on upholstered furniture to 30%. This will have a significant impact on the global furniture industry.

In the proclamation, Trump said that the wood tariffs were necessary to shore up America’s local industries and support national security.

“In my judgment, the actions in this proclamation will, among other things, strengthen supply chains, bolster industrial resilience, create high-quality jobs, and increase domestic capacity utilization for wood products such that the United States can fully satisfy domestic consumption while also creating economic benefits through increased exports,” Trump wrote.

The White House in March ordered the Commerce Department to investigate the potential national security threats posed by imported lumber – the majority of which comes from Canada. Trump for months has been criticizing America’s northern neighbor for its significant lumber exports to the United States.

Trump routinely claims that the United States has enough trees to support its own lumber needs, and he has lambasted Canadian tariffs on US lumber, claiming America can do without Canadian lumber. In his March executive order that set the investigation in motion, Trump said the United States has an “abundance of timber resources that are more than adequate to meet our domestic timber production needs.”

It can be seen from this that the policy is intended to protect the U.S. lumber industry. Therefore, if lumber is procured from the U.S., the U.S. will waive tariffs on furniture processed from such lumber. Among all kitchen cabinets, solid oak kitchen cabinets will be the least affected by the U.S. tariffs on kitchen cabinets. Thus, those looking to customize high-end solid oak cabinets may consider Vietnamese suppliers.

*** Source from CNN Headlines***