New wood and furniture tariffs expected to add costs to residential construction

President Donald Trump last week ordered significant new tariffs on wood and wood products, including imported lumber, timber, kitchen cabinets, and upholstered furniture.

The tariffs are expected to put pressure on the cost of residential construction. The U.S. will charge a 10% tariff on foreign softwood lumber and timber, used in a wide variety of building materials. 

In addition, a 25% tariff will be levied on kitchen cabinets, vanities, and upholstered wooden furniture. Those rates will go into effect on Oct. 14. On Jan. 1, the tariff on cabinets will jump to 50% and the levy on upholstered furniture will rise to 30%.

The U.S. sources about 30% of the softwood lumber it uses annually from Canada. Lumber imports from Canada are already subject to anti-dumping duties of 14.5%. Tariffs that Trump had previously imposed have already caused furniture prices to rise over the past year. Furniture in August cost 4.7% more than it did a year ago.