New tariffs begin October 14, and importers will face higher costs on wood products.

A Presidential Proclamation signed September 29, 2025 imposes a 10% tariff on softwood timber and lumber and 25% on certain upholstered wooden furniture, kitchen cabinets, and bathroom vanities, effective October 14, 2025. Caps apply for the UK (10%) and EU/Japan (15%). These tariffs are eligible for duty drawback and will not apply alongside certain IEEPA-based tariffs (reciprocal tariffs, the 40% Brazil measure, or the additional 25% duties on India). Importers should review shipments carefully for entries between October 14 and December 31, since origin and timing can materially change effective duties.

What are the key insights importers should know?

• Effective date: October 14, 2025.
• Rates now vs. later: 10% on lumber; 25% on upholstered furniture, cabinets, and vanities now; higher rates scheduled January 1, 2026 if no agreements are reached (30% upholstered; 50% cabinets/vanities).
• Country caps: UK capped at 10%; EU/Japan capped at 15% including MFN.
• Drawback allowed: Unlike earlier Section 232 tariffs, drawback explicitly applies.
• Carve-outs: These goods are exempt from IEEPA reciprocal tariffs, the Brazil 40% tariff, and the 25% India duties tied to EO 14329.

Next checkpoint: The Commerce Department must deliver an update on hardwood timber and lumber by October 1, 2026, which may inform further action.

Why does this matter to U.S. importers right now?

Two issues stand out: cash flow and pricing. Drawback eligibility means importers who later export or destroy these products can recover nearly all of the duties, reshaping landed cost models. Meanwhile, because the wood tariffs do not stack with certain IEEPA measures, effective rates may be lower than expected for some origins in Q4 2025. Timing entries before the January 1, 2026 rate hikes may also help reduce exposure, if done lawfully.

How should importers recalc landed cost this week?

1. Check HTS coverage: Confirm whether each SKU is listed in the proclamation annex.
2. Model by origin and entry date: Apply UK/EU/Japan caps and compare October 14 vs. January 1 deliveries.
3. Run simulations: Use updated tariff calculators to test scenarios HTS by HTS.
4. Layer other programs: Confirm overlapping IEEPA tariffs don’t apply to these products.
5. Identify drawback-eligible flows: Work with your broker to set up drawback claims in advance.

What can you do about Q4 volatility in wood costs?

• Time lawful entries: For some suppliers, effective duty rates may be lower if entered before year-end. Always confirm with your broker.
• Apply country caps correctly: Brokers should apply the 10% (UK) or 15% (EU/Japan) ceilings. Misclassification can lead to overpayment.
• File for drawback early: If you routinely export or destroy these goods, coordinate drawback filings now.

What are the main takeaways?

• Start date: October 14, 2025.
• Rates: 10% on lumber; 25% on upholstered furniture/cabinets/vanities; higher rates January 1, 2026.
• Caps: UK limited to 10%; EU/Japan limited to 15%.
• Exemptions: Not subject to certain IEEPA tariffs on Brazil and India.
• Drawback: Explicitly allowed.
• Future risk: Commerce report due October 1, 2026 could trigger further measures.

FAQ

When did this happen, and when is it effective?
Signed September 29, 2025; effective October 14, 2025 at 12:01 a.m. EDT.

Do these tariffs stack with other IEEPA tariffs?
No. Products covered by the proclamation are not subject to the IEEPA reciprocal tariffs, the Brazil 40% measure, or the India 25% duties stemming from EO 14329.

Is duty drawback allowed?
Yes. The proclamation explicitly authorizes drawback on these tariffs, subject to standard CBP rules.

What are the country caps?
UK capped at 10%. EU and Japan capped at 15% including MFN duty.

What’s next?
Commerce will deliver an update on hardwood timber and lumber by October 1, 2026, which may inform additional duties.