United States delays section 232 tariff hike on wood products: A tactical adjustment, not linked to reciprocal tariff rulings
On December 31, 2025, President Donald Trump signed a Proclamation adjusting U.S. import tariff policy on timber, lumber and wood-derived products under Section 232 of the Trade Expansion Act of 1962. Accordingly, the United States decided to delay the planned tariff increase on several finished wood products, including upholstered chairs, kitchen cabinets and bathroom vanities, from January 1, 2026 to January 1, 2027.
Under Proclamation 10976 issued in September 2025, wood products are currently subject to tariffs of 10% on raw timber and 25% on deeply processed items, with rates scheduled to rise sharply from early 2026 to 30% and 50%, respectively. The postponement of the higher rates means that existing tariff levels will remain in effect. The U.S. administration said the move is intended to create room for ongoing trade negotiations while serving broader objectives of economic security and supply chain stability. Notably, future tariff adjustments will depend directly on negotiation outcomes, underscoring that tariffs continue to be used as a strategic bargaining tool rather than purely as a protectionist measure.
In essence, it should be clearly stated that this is not a suspension of tariffs, but a delay in the tariff increase. Imported wood products entering the U.S. market remain subject to Section 232 duties at rates of 10% and 25%. Despite facing multiple challenges, Vietnam’s wood and wood product exports to the United States maintained positive growth momentum in 2025. As such, the decision carries tangible significance. Avoiding an immediate tariff shock at the start of the year helps enterprises maintain orders, stabilize pricing, and gain additional time to adjust market strategies.
Importantly, the delay in the Section 232 tariff increase is entirely unrelated to any final rulings by the U.S. Supreme Court on reciprocal tariff executive orders. This is because Section 232 tariffs are imposed on national security grounds and fall under executive authority, operating under a legal basis and mechanism distinct from reciprocal tariff measures under the International Emergency Economic Powers Act (IEEPA). Therefore, regardless of any judicial adjustments affecting reciprocal tariffs, Section 232 tariffs on wood products will remain independently in force.
In the medium term, risks persist. The United States is expanding investigations and the application of Section 232 to additional imported product groups, and further tariff adjustments cannot be ruled out as tools for negotiation or to address domestic economic and political pressures in 2026. For Vietnam’s wood industry, 2026 should be viewed as a period of “temporary stability but not yet security,” requiring close monitoring of policy developments, proactive engagement with U.S. counterparts, and preparation of long-term response scenarios.
