Understanding Tariffs: A Guide for NHLA Members

Tariffs directly impact the hardwood industry, shaping pricing, competitiveness, and profitability. This guide helps NHLA members understand how tariffs affect hardwood products and how NHLA supports fair trade policies that protect your interests.

Hardwoods vs. Softwoods: Key Differences

• Hardwoods: Often targeted by retaliatory tariffs, especially in U. S.-China trade disputes. These tariffs increase costs for foreign buyers, forcing U.S. producers to lower prices or lose market share. Members face higher costs, regulatory challenges, and competition from countries with lower tariffs.
• Softwoods: While primarily a softwood issue, tariffs on Canadian softwood lumber indirectly affects hardwood markets. Price increases push some buyers toward hardwoods, while others cut purchases. Understanding these shifts helps members identify risks and opportunities.

Retaliatory Tariffs: What They Mean for You Retaliatory tariffs occur when one country imposes tariffs in response to another’s trade actions. For U.S. hardwoods, this means higher duties in key markets, making American products less competitive.

Latest Updates: U.S.-China Tariff Pause
As of May 2025, a 90-day pause has been announced, during which tariffs on U.S. hardwoods entering China are reduced to 10%, while U.S. tariffs on Chinese products drop from 145% to 30%. China has also agreed to suspend some non-tariff barriers, but the U.S. log ban remains. However, this situation is fluid. Full tariffs (125%) on U.S. hardwoods could resume in August, but the exact timeline is still uncertain.

NHLA’s Position: Fair Trade, Not Free Trade
NHLA supports fair trade, which means creating a level playing field where American hardwood producers compete without unfair barriers. Unlike free trade (which eliminates restrictions), fair trade balances protections for U.S. businesses with ethical practices.

Why Fair Trade Matters for You

• Protects U.S. hardwood jobs and businesses.
• Keeps American hardwoods competitive abroad.
• Supports responsible forestry and sustainable sourcing.
• Make informed decisions

Stay informed and make choices that protect your business. NHLA is here to keep you updated and advocate for your interests.

Questions? Contact NHLA at [email protected] or visit nhla.com.