Washington: US President Donald Trump’s fresh tariffs on imported wood, furniture, and kitchen cabinets officially came into effect Tuesday, a move likely to increase construction and renovation costs amid an already strained housing market. The duties, framed by the White House as measures to protect national security and boost domestic industries, are part of a broader slate of sector-specific tariffs imposed since Trump’s return to the presidency.
The latest measures include a 10-percent tariff on imported softwood lumber, while duties on selected upholstered furniture and kitchen cabinets start at 25 percent. Beginning January 1, 2026, the tariff on imported upholstered furniture will rise to 30 percent, and duties on kitchen cabinets and vanities will jump to 50 percent. Exemptions and lower ceilings apply for certain trading partners: imports from Britain will not exceed 10 percent, and products from the European Union and Japan face a 15-percent cap. These agreements were reached to avert harsher duties on key allies.
Industry observers have warned that the tariffs could further strain an already challenging market. Buddy Hughes, chairman of the National Association of Home Builders (NAHB), cautioned, “These tariffs create additional headwinds for an already challenged housing market by further raising construction and renovation costs.” US home sales have been sluggish in recent years, with high mortgage rates and limited inventory driving up prices for buyers.
The White House justified the move by citing national security concerns. Trump’s proclamation noted that wood products are “used in critical functions of the Department of War, including building infrastructure for operational testing,” and emphasized that domestic wood production remains underdeveloped, leaving the US dependent on imports. NAHB’s Hughes, however, criticized the rationale, stating, “Imposing these tariffs under a ‘national security’ pretext ignores the importance housing plays to the physical and economic security of all Americans,” and called for negotiations to roll back tariffs on building materials.
Canada, the top US lumber supplier, is expected to be significantly impacted. The 10-percent tariff adds to existing anti-dumping and countervailing duties, which the US recently raised to 35 percent, bringing the total duty on Canadian lumber to 45 percent. The BC Lumber Trade Council described the tariffs as “misguided and unnecessary,” warning that they could strain the North American market, threaten jobs on both sides of the border, and exacerbate the US housing supply crisis.
Stephen Brown, senior economist at Capital Economics, estimated that with 30 percent of lumber imported, a 10-percent tariff could increase the cost of building an average home by $2,200. Furniture imports from China, Vietnam, and Mexico will also be affected. The US sources 27 percent of its furniture imports from China, nearly 20 percent from Vietnam, and 20 percent from Mexico. Vietnam may face the largest impact, as furniture represents 10 percent of its exports to the US.
The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962, the same authority used to roll out steel, aluminum, and auto duties earlier this year. Importantly, products subject to these sector-specific tariffs are not additionally hit by previously imposed country-wide tariffs, some of which are even higher.
As the tariffs take effect, builders, developers, and homebuyers in the US are likely to feel immediate cost pressures, with analysts warning of higher construction expenses and potential slowdowns in residential housing activity.