The Trump administration has delayed planned tariff increases on a range of imported wood-related products, a move expected to provide short-term stability for the homebuilding and renovation industries as they enter 2026.

The White House announced Wednesday, Dec. 31 that it will hold off on raising tariffs on timber, furniture, kitchen cabinets and vanities. The decision follows a Commerce Department Section 232 investigation that found current levels of imported wood products “threatened to impair national security,” according to a press release. While the findings support higher tariffs, the administration opted to pause increases to allow further negotiations with trade partners.

“Trump recognizes that an overreliance on foreign timber, lumber, and their derivative products could jeopardize the United States’ defense capabilities, construction industry, and economic strength,” the release reads.

As a result, tariff hikes scheduled to take effect Jan. 1 were delayed for one year. A 25% tariff on upholstered furniture, kitchen cabinets and vanities remains in place, instead of rising to 30% on wooden furniture and 50% on cabinets and vanities as previously planned.

Industry analysts say the pause prevents additional cost escalation but does little to reverse higher prices already built into the market. Tariffs on building materials are largely passed on to consumers, raising construction, renovation and home prices.

Research groups estimate that higher building costs tied to tariffs could significantly worsen the nation’s housing shortage. Studies project hundreds of thousands fewer homes built over the next five years and billions of dollars added annually to residential construction costs, translating to higher per-home prices.
 
Source: inkfreenews.com