Canadian wood product exporters are bracing for another economic hit after U.S. President Donald Trump announced steep new tariffs on lumber, timber, and furniture imports.
Under a presidential proclamation signed Monday, the U.S. will impose a 10% duty on lumber and timber and 25% on kitchen cabinets, bathroom vanities, and upholstered furniture, effective Oct. 14, 2025. Tariffs will rise again on Jan. 1, 2026 — up to 30% on upholstered wooden products and 50% on cabinets and vanities for countries without trade agreements with Washington.
Trump justified the duties under Section 232 of the Trade Act of 1974, arguing that foreign wood imports weaken U.S. national security by undermining domestic supply chains for defence-related materials.
“Because of the state of the United States wood industry, the United States may be unable to meet demands for wood products that are crucial to national defence,” the proclamation said.
A blow to Canada’s industry
The move is particularly punishing for Canada, America’s top softwood lumber supplier, already facing combined anti-dumping and anti-subsidy tariffs of about 35%.
Ottawa previously pledged $1.2 billion in aid for Canadian producers caught in the long-running trade dispute, but industry leaders warn the new tariffs could trigger closures.
James McKenna, owner of Glenwood Kitchen in Shediac, N.B., said the 25% cabinet duty threatens his U.S. business:
“Anything above 25 per cent is not doable and will ultimately shut down the industry shipping to the United States.”
Brian Menzies of the Independent Wood Processors Association of B.C. echoed that warning:
“Our industry has already been devastated… We’re being told we’re a national security concern. It’s getting more and more ludicrous.”
Winners and losers
Some U.S. allies will see softer penalties. Imports from Britain will face a maximum of 10%, while shipments from the EU and Japan will be capped at 15%.
But no exemptions were announced for Canada, Mexico, or Vietnam, despite recent trade talks.
The U.S. Chamber of Commerce has opposed the tariffs, warning they will raise construction costs and undermine U.S. paper and wood product industries.
For Canadian producers, though, the stakes are immediate: an industry already navigating inflation, supply chain shocks, and years of tariff battles now faces what one operator called “the blow that could finally break us.”
