New U.S. trade measures are reshaping conditions for wood and furniture exporters, following a recent Supreme Court ruling limiting the president's authority to impose punitive tariffs under the IEEPA law. Shortly after the decision, the U.S. administration introduced a new global punitive tariff of 10% using Section 122 of the Trade Act of 1974.
© Engdao Wichitpunya | Dreamstime
The new rule means that an additional 10% duty is now added to existing import tariffs on goods entering the United States. For companies exporting wood and furniture products, the final tariff rate depends on the specific product classification within the U.S. customs system.
According to the Danish Wood and Furniture Industry (TMI), the situation is complex because some wood products are already subject to other duties, such as Section 232 safeguard tariffs, which were originally introduced for national security and supply chain reasons. Products covered by these rules may be fully or partially exempt from the new 10% tariff.
In addition, around 1,600 product codes in the U.S. customs system are currently excluded from the new punitive duties. For products that are affected, the final tariff consists of two components: the standard U.S. import duty (MFN duty) and any additional punitive tariff. In some cases, this results in a combined duty of around 13.2%, including the new surcharge.
Industry organisations emphasise that accurate product classification is now critical for exporters to calculate the true cost of selling wood and furniture products in the U.S. market.
Source: www.wood-supply.dk
