Section 232 Tariffs for Lumber, Kitchen Cabinets, Other Wood Products on Oct. 14
President Trump issued a proclamation Monday evening, Sept. 29 that announced the implementation of Section 232 tariffs for lumber, kitchen cabinets and vanities, and other wood products to take effect on 12:01 a.m. ET on Oct. 14.
The rates of duty established in this proclamation shall apply with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on Oct. 14, the proclamation said. Specifically, the tariffs include:
- 10% global tariff on imports of softwood lumber.
- 25% global tariff on certain upholstered furniture, which will increase to 30% on Jan. 1.
- 25% global tariff on kitchen cabinets and vanities, which will increase to 50% on Jan. 1.
Trump stated that “The United Kingdom, the European Union, and Japan will enjoy more favorable treatment that reflects the terms of their trade deals with the United States.”
The Section 232 tariff on subject wood imports from the United Kingdom will not exceed 10%, while the combined Section 232 tariff and most-favored nation tariff on subject wood imports from the European Union and Japan will not exceed 15%.
Trump also said “Products that are not subject to these Section 232 tariffs will generally be subject instead to reciprocal tariffs.”
The Proclamation also said that trading partners who negotiate with the U.S. to address the threat of wood imports to the national security of the U.S. may be able to secure an alternative to the pending tariff increases.
Here is the the full Proclamation.
Here is the annex for which products are subject to the increases.
If you have any questions, please contact our office.
Protect Your Potential Refund
Please see the following message from Roll & Harris LLP on potential refunds for importers and a free webinar announcement.
Supreme Court Tariff Cases / Reciprocal and Fentanyl Tariffs / What Importers Need to Know About Potential Refunds
As most importers know by now, the Supreme Court has agreed to hear the government's appeal concerning the legality of the reciprocal and fentanyl tariffs. Notably, the majority of judges who have considered the legality of these tariffs have found them to be illegal - but the case is now at the country's highest court and it remains to be seen whether at least 5 of the justices will agree witih the lower courts or not. A decision, whatever it may be, will be issued during this Supreme Court's current term - which ends in June 2026.
Judging from the questions our firm has been receiving from clients and friends of the firm, as well as discussions with other members of the bar, it is far from clear what will happen should the Supreme Court agree with the lower courts. Should importers file their own refund lawsuits now? What about protests or requests for extension of liquidation? Or should importers just do nothing and take a "wait and see" approach?
While each importer will have to make its own decision about how to best protect its own rights to potential refunds (after consulting its own customs and trade counsel), we believe it will be helpful to provide importers with an overview of the issues that will arise regarding refunds should the Supreme Court rule against the Trump Administration. To that end, we are offering a free 90 minute webinar on Thursday, September 25, 2025 at 10 am West Coast time to discuss what potential refund scenarios may look like and what importers should do to protect their right to a refund. We also will discuss when they should take action. A link to register may be found here.
If you have any questions, please contact our office.
Tariff Update - September 11, 2025
Please see the following important notice from Roll & Harris LLP on Mexico's proposed tariff increases.
Tariff Update - September 11, 2025 / Mexico Hops On the Tariff Train
Mexico's President has introduced a bill to the Mexican Congress that would significantly raise Mexico’s normal trade relation duty rates on numerous products, including those in the the automotive, textile, clothing, plastic, steel, household appliance, aluminum, toy, furniture, footwear, leather goods, paper and cardboard, motorcycle, trailer, and glass industries, among others. A copy of the bill, which lists out the affected tariff classifications, may be downloaded here.
While not yet law, it is anticipated that Mexico's Congress will pass the bill and, therefore, will hike numerous Mexican tariffs - most to around 35%. Once passed, the law will take effect 30 days after being approved and published in Mexico’s official gazette, known as the Diario Oficial, and will expire at the end of 2026.
Unfortunately, the increase will negatively affect Mexican maquiladoras who import materials into Mexico that are not eligible for duty preferences granted by Mexican Free Trade Agreements (MXFTAs), for example, non-USMCA origin materials. Whether or not Mexico will also eliminate the tariff classifications with tariff increases from Mexico's Sectoral Program (PROSEC), which grants certain industries or sectors relief from tariffs, remains to be seen. Same for maquiladoras who try to use "Regla Octava" (Rule 8) to mitigate tariff impacts on their operations.
Maquiladoras will be negatively affected because the main duty relief afforded to maquiladoras is that of duty deferral, NOT duty elimination. The USMCA mandates that duties cannot be deferred in excess of whatever is less: the deferred duties on the non-USMCA raw materials when imported into Mexico or the US or Canadian duties charged on the finished product. Based on this mandate, if non-USMCA origin materials are imported into Mexico, with duties deferred, and the maquiladora makes a good that enters the United States duty-free under USMCA, Mexico requires the maquiladora to pay the deferred Mexican duties. Accordingly, with an increase in the Mexican duty rates under the draft bill and more products entering the United States duty-free under USMCA, maquiladoras likely will have to pay more tariffs in the future.
Companies manufacturing in maquiladoras should closely monitor the origin of their raw materials and potentially implement changes in sourcing to procure more MXFTA/USMCA origin raw materials. As noted above, it remains to be seen whether/how Mexico will change its Sectoral and Rule 8 Programs in light of the new proposed tariff increases.
If you have any questions, please contact our office.
Trade Updates - September 8, 2025
Please see the following messages from Roll & Harris LLP, Sidley Austin LLP and Accelerate Strategies regarding the actions President Trump took recently on reciprocal tariffs and the trade deal with Japan. On Friday, President Trump added some exclusions from reciprocal tariffs and took away some exclusions. Mike Roll lists the HTS affected in his email below.
(Update courtesy of Roll & Harris LLP)
Trump Modifies Exclusion List for Reciprocal Tariffs / Retroactive Refunds of Reciprocals Available for Japanese Origin Goods
MODIFIED RECIPROCAL EXCLUSION LIST
On Friday, September 5th, President Trump issued a new Executive Order (EO) to modify EO 14257. EO 14257 was previously issued in April to establish Trump's "reciprocal tariff" program. In EO 14257, Trump had created a list of products, which were listed in Annex II of EO 14257 (and are currently listed in US Note 2(v)(iii) to Subchapter III of Chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS)) that were specifically excluded from the reciprocal tariffs created by EO 14257 through use of HTSUS subheading 9903.01.32. Last Friday's EO added the following new products to EO 14257 (thereby excluding these goods from reciprocal tariffs):
2504.10.10
2604.00.00
2609.00.00
2612.20.00
2613.90.00
2825.40.00
2833.24.00
2903.51.10
2924.29.01
2924.29.03
2924.29.23
2924.29.26
2924.29.28
2924.29.33
2924.29.57
2924.29.80
2926.90.50
2933.29.05
2933.29.60
4703.11.00
4703.21.00
4703.29.00
7108.11.00
7108.12.50
7108.13.10
7108.13.55
7108.13.70
7108.20.00
7115.90.05
7115.90.30
7202.60.00
7501.10.00
7502.10.00
7502.20.00
7503.00.00
7504.00.00
7903.90.30
8505.11.0070
8541.41.00
The above list is mainly regarding bullion-related articles and certain critical minerals and pharmaceutical products subject to pending Section 232 investigations.
Last Friday's EO also removed the followiing products from Annex II (thereby making these products be subject to the reciprocal tariffs):
2818.30.00
3824.99.93
3907.29.00
3907.30.00
3907.61.00
3907.69.00
3907.99.50
3910.00.00
The above goods include certain aluminum hydroxide, resin, and silicone products. The White House published an updated Annex II reflecting the above changes. A copy may be found here. We anticipate that the US International Trade Commission will update US Note 2(v)(iii) to Subchapter III of Chapter 99 of the HTSUS shortly.
Importantly, the changes announced on Friday take effect today (September 8th) for entries filed after 12:01 am EDT. US Customs & Border Protection has already issued CSMS Message 66151866 to further implement these changes.
REFUNDS AVAILABLE FOR JAPANESE ORIGIN GOODS
In separate news, on September 4th, the Trump Administration issued a separate EO to implement the trade deal with Japan. The September 4th EO caps Japan's reciprocal tariffs at 15%, similar to the trade deal with the European Union. That is, if the regular tariff rate for Japanese origin products is 15% or higher, there is no reciprocal tariff. By contrast, if the regular tariff rate for Japanese origin products is less than 15%, the reciprocal tariff is equal to the difference between that rate and 15% (for example, a product with a regular tariff rate of 3% would have a 12% reciprocal tariff rate). Prior to the September 4th EO, CBP had been charging a 15% reciprocal tariff in addition to the regular tariff rate. The new EO makes the 15% cap effective retroactive to August 7, 2025 and allows importers to apply for refunds via standard customs procedures (i.e., post summary corrections (PSCs) and protests). However, CBP immediately issued CSMS Message 66146676 advising imports to NOT file PSCs or protests until CBP issues further guidance and instructions.
Separately, the September 4th EO removed reciprocal and Section 232 aluminum, steel, and copper tariffs entirely from Japanese origin goods used in aerospace and that qualify for the World Trade Organization Agreement on Trade in Civil Aircraft. For autos and auto parts, the September 4th EO also eliminated the Section 232 auto and auto parts tariffs on goods whose regular rate of duty is 15% or more. For goods whose regular rate of duty is less than 15%, Section 232 auto and auto part tariff rates are now set at the difference between the regular rate and 15% (similar to the reciprocal tariff math described above).
Lastly, the September 4th EO directed the Commerce Secretary to modify the reciprocal tariff rate to zero for products that are natural resource unavailable (or unavailable at sufficient scale to satisfy domestic demand) in the United States, generic pharmaceuticals, generic pharmaceutical ingredients, and generic pharmaceutical precursors.
(Update courtesy of Sidley Austin LLP.)
Friday evening, President Trump issued a new Executive Order revising the scope of the reciprocal tariffs imposed in previous orders and setting out how the trade agreements being negotiated with other jurisdictions will be implemented. The tariff changes made in Friday’s order go into effect on Monday, September 8, 2025 (yes, this Monday). A copy of the order is available here.
In this EO, President Trump is modifying the list of articles exempted from the reciprocal tariffs (i.e., modifying Annex II to Executive Order 14257). A handful of goods are being added to Annex II (including bullion-related articles and certain critical minerals and pharmaceutical products subject to pending Section 232 investigations) and a handful of goods are being removed from Annex II (including certain aluminum hydroxide, resin, and silicone products). The articles removed from Annex II are subject to the reciprocal tariffs (as of Monday).
The EO also includes a new annex (Annex III) that contains a list of articles the United States will consider reducing tariffs on as part of any negotiated trade agreement. These are “products that cannot be grown, mined, or naturally produced in the United States or grown, mined, or naturally produced in sufficient quantities in the United States to satisfy domestic demand; certain agricultural products; aircraft and aircraft parts; and non-patented articles for use in pharmaceutical applications.” The EO also delegates authority to the Secretary of Commerce and the United States Trade Representative to take any actions necessary to implement the framework and the final agreements.
Stepping back, this EO is significant. It writes Congress right out of the tariff setting process (now and in the future). It also appears to end the United States’ commitment to the rules-based international trading system it helped create. Basically, the President will set (and modify) tariffs on his own initiative. That is a big deal on several levels, but not the least of which is because it deprives U.S. companies of a large degree of certainty/predictability. If tariffs can change with 3 days’ notice (over a weekend), can a company really plan ahead? Should a company have any confidence that tariffs will not change in the future without notice, even in situations where there is a “final” agreement? Probably not.
(Update courtesy of Accelerate Strategies.)
Update #1: United States - Japan Agreement
I have received questions about whether the 15% tariff imposed on Japanese imports “stacks” on top of the MFN rate. The quick answer is no. Just like the agreement the U.S. reached with the European Union, exports from Japan are subject to the higher of either a 15% tariff or the Column 1 rate. If the Column 1 rate is below 15%, an IEEPA tariff is applied to make up the difference. If the Column 1 rate exceeds 15%, only that higher rate applies, with no additional IEEPA duty. Here is the Executive Order President Trump issued last week.
Related: CBP issued a message to the trade which says: "Subsection 2(d) of the EO states, “The tariffs set forth in subsection (a) of this section shall apply retroactively to products of Japan entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on August 7, 2025. Any refunds shall be processed pursuant to applicable laws and [U.S. Customs and Border Protection’s (CBP’s)] standard procedures for such refunds.” Pursuant to this retroactive provision, the trade community is not to file a Post Summary Correction or protest until CBP issues instructions on how those requests for refunds should be submitted. CBP will provide additional guidance to the trade community through CSMS messages as appropriate."
Update #2: President Trump Threatens Additional Tariffs
President Trump threatened to impose additional tariffs against the European Union after the bloc levied a €2.95B fine against Google for violating anti-monopoly laws, suggesting in a Truth Social post they may order an investigation under Section 301 of the Trade Act of 1974.
It’s worth noting the threat of secondary tariffs still hang over countries and engage in trade with Russia. Watch Treasury Secretary Scott Bessent’s interview yesterday on Meet the Press (comments on secondary tariffs are at the very end).
Please contact us with questions at compliance@iab-sd.com.
New Trade Fraud Task Force Signals Increased Tariff Enforcement is Coming
Please see the following update from Ted Murphy of Sidley Austin LLP regarding the new Trade Fraud Task Force.
On August 29, 2025, the Department of Justice (DOJ) and Department of Homeland Security (DHS) announced their partnership on the cross-agency Trade Fraud Task Force. Per DOJ’s press release, the Task Force will bring robust enforcement against importers and other parties who seek to defraud the United States.
The Task Force is another step in implementing President Trump’s “America First Trade Policy,” which was announced at the beginning of the Trump administration and “promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.” A critical part of the policy is ensuring compliance with trade laws, including the payment of all applicable tariffs and duties. This Task Force will advance the America First Trade Policy by pursuing those who violate customs laws through duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act, and parallel criminal prosecutions, penalties, and seizures.
The Task Force also involves a partnership between DOJ’s Civil and Criminal Divisions, which may collectively or individually bring trade-related enforcement actions against parties who seek to evade tariffs and other duties, as well as parties who seek to import prohibited goods into the United States. In announcing the Task Force, Assistant Attorney General Brett A. Shumate of DOJ’s Civil Division stated that “the Civil Division will coordinate with law enforcement partners to bring to justice any parties attempting to harm American workers through evasion of tariffs and other duties.” Similarly, Acting Assistant Attorney General Matthew R. Galeotti of DOJ’s Criminal Division stated that the Criminal Division “is committed to using every available tool to hold bad actors accountable and prevent the theft of money intended to reduce the deficit and fund government programs.” DOJ will work closely with DHS and, more specifically, U.S. Customs and Border Protection and Homeland Security Investigations.
The announcement of the Task Force was accompanied by a call for American manufacturers and workers to report unfair trade practices and trade fraud, noting that U.S. domestic companies are often best placed to identify fraud that threatens U.S. markets and American workers and their families. The announcement explains that referrals can be submitted through the Criminal Division’s Corporate Whistleblower Program. Similarly, the Task Force encourages whistleblowers to utilize the qui tam provisions of the False Claims Act to alert the government to credible allegations of fraud. Finally, the Task Force encourages all importers to conduct thorough audits of their importing practices and voluntarily self-disclose and remediate unlawful behavior.
The U.S. tariff landscape has changed dramatically over the past 6 months. Many different tariffs have been imposed on goods from virtually every country with little advance notice. This has led to shifts in sourcing, reevaluation of tariff classifications and country of origin declarations, and the implementation of new tariff mitigation strategies. Despite all of these changes, companies need to ensure that they remain in compliance with U.S. customs law.
The announcement of the Task Force further reinforces this point by raising the prospect of significantly heightened civil and criminal trade and tariff enforcement. In light of this, companies should be taking steps today to enhance their trade compliance programs in order to minimize the likelihood that they become subject to tariff-related government investigations and enforcement actions.
We previously discussed some of those steps, along with a more detailed analysis of the Trump administration’s focus on tariffs and tariff enforcement, in a separate white collar and trade enforcement update available here.
If you have any questions, please contact our office.