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4h ago

Trump’s Lumber and Furniture Tariffs Take Effect, With Bigger Hikes Set for January

Analysts warn consumers will absorb most costs, raising pressures on housing.

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A worker sorts lumber at the Gorman Brothers Lumber sawmill, in West Kelowna, B.C., on Tuesday, August 5, 2025. THE CANADIAN PRESS/Darryl Dyck
Furniture prices in the United States have been rising at the fastest pace since the Covid-19 pandemic. Furniture executives caution that tariffs could amplify that trend.
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Overview

  • Imports now face a 10% tariff on softwood lumber and 25% on specified upholstered furniture, kitchen cabinets and vanities, with rates scheduled to rise to 30% and 50% respectively on Jan. 1.
  • The measures were imposed under Section 232 on national-security grounds, and the Commerce Department was directed to monitor prices, police circumvention and consider specific or mixed tariffs.
  • Goldman Sachs estimates U.S. households will bear about 55% of the tariff costs this year, potentially reaching 70% next year, as businesses and foreign suppliers absorb less over time.
  • Homebuilding groups warn of higher costs, with UBS estimating roughly $1,000 added to the average new home, and companies reporting price increases and leaner product assortments.
  • Existing duties on Canadian softwood mean effective levies rise to roughly 45%, while separate agreements cap wood-product tariffs from the U.K. at 10% and from the EU and Japan at 15%.