As the federal government shutdown continues, CBP reports no workforce reductions or operational slowdowns impacting trade at this time. Cargo inspections, tariff collections and port operations remain active, while non-essential planning, audits and policy development have been temporarily paused.
Bond sufficiency reviews are being processed as normal, so it is essential to monitor bond sufficiency throughout the government shutdown.
Section 232 Tariffs on Imports of Timber, Lumber and Wood-Derived Products
On Sept. 29, 2025, President Trump issued a proclamation imposing new Section 232 tariffs on imports of timber, lumber and a wide range of wood-derived products. The duties, which take effect at 12:01 a.m. ET on Oct. 14, are designed to protect domestic industries deemed critical to U.S. national security. The proclamation follows a Section 232 investigation initiated by the U.S. Department of Commerce on March 1, 2025, and completed July 1, 2025, which found that reliance on foreign timber and lumber could pose supply chain vulnerabilities. The Federal Register for this trade remedy tariff was published on October 6. The Annex lists the affected ad valorem general Harmonized Tariff Schedule (HTS) codes.
Tariff rates under the new measures:
- Upholstered wooden products: 25% duty, increasing to 30% on Jan. 1, 2026
- Kitchen cabinets and vanities: 25% duty, increasing to 50% on Jan. 1, 2026
- Softwood timber and lumber: 10% duty, no announced increase
While these rates are significant, certain country-specific adjustments apply. Products originating in the United Kingdom will face the ad valorem most favored nation (MFN) rate plus 10%, while imports from the European Union and Japan will be capped at a combined 15% rate, inclusive of the MFN duty.
There is no in-transit exclusion for shipments loaded prior to Oct. 14. Goods that are entered and have arrived in the United States on or after Oct. 14 will be subject to the new tariff rates upon entry.
Duty drawback will be available on the Section 232 tariffs on timber, lumber and wood-derived products.
Reciprocal Tariff Annex II Exclusions List:
Effective Oct. 14, Chapter 44 (wood/lumber) tariff provisions are removed from the Annex II exclusion list of Executive Order 14257, “Regulating Imports with a Reciprocal Tariff.”
An exception to this are HTS codes included on the Annex III list “Potential Tariff Adjustments for Aligned Partners Annex” of Executive Order 14346 “Modifying the Scope of Reciprocal Tariffs.”
If the product is already penalized for unfair trade via antidumping or countervailing duties, it won’t also be subject to the Section 232 tariffs on timber, lumber and wood-derived products.
Tariff Stacking
Products subject to these tariffs will not also be subject to tariffs imposed under the following:
- IEEPA Reciprocal Tariff
- IEEPA Brazil
- IEEPA Russian Oil (assessed on products from India)
- If a wood product falls under both this proclamation and automobile/automobile parts tariffs, only the automobile-related duties apply
- If a wood product is covered under both this proclamation and IEEPA Fentanyl Canada or IEEPA Fentanyl Mexico, the duties from this proclamation will apply
Foreign Trade Zones
For importers operating within foreign trade zones (FTZs), new obligations also take effect. Products entering zones after Oct. 14 must be admitted under privileged foreign status, locking in their duty rate at the time of entry. However, some goods already admitted under domestic status may be exempt.
Implications
In the near term, companies are advised to conduct a comprehensive audit of their wood-product imports to determine exposure, confirm HTS classification accuracy and verify country-of-origin claims. For importers using FTZs, careful entry planning may help limit unnecessary duty costs.
The Commerce Department also reserved the right to expand the scope of affected items in the future, so importers of other wood-based merchandise should monitor potential updates.
Given the potential for further scope expansion and administrative updates, importers should closely follow Federal Register notices, CBP guidance and forthcoming annex lists from the Department of Commerce.
Section 301 Vessel Fees Connected to China’s Shipbuilding and Maritime Sectors
The Office of the United States Trade Representative (USTR) announced new fees on vessels connected to China’s shipbuilding and maritime sectors. Although importers are not directly responsible for paying these vessel fees, they should remain aware of the related requirements, as noncompliance or operator delays could indirectly affect cargo movement.
These fees are part of a broader effort under Section 301 trade actions to address China’s policies in these industries. Starting Oct. 14, 2025, vessel operators must follow specific procedures for determining and paying these new charges. The new fees apply to vessels that are owned or operated by Chinese companies, and vessels that were built in China, even if they are operated by non-Chinese companies. This measure is part of the U.S. government’s broader strategy to counter China’s efforts to dominate global shipbuilding and logistics. It reflects growing trade enforcement across multiple sectors, similar to past Section 301 tariffs on Chinese goods.
The vessel operator, not CBP, is responsible for figuring out whether their vessel is subject to the fee. CBP will not calculate or collect these fees at the port. The fees must be paid directly to the U.S. Department of the Treasury by the vessel operator, not at the port of entry. Proof of payment will be required when the vessel arrives in the U.S. If payment cannot be verified, the vessel may be denied permission to load, unload or clear the port. The USTR recommends that operators submit payment at least three business days before arrival to avoid delays.
Fee structure:
- Chinese-owned or operated vessels: $50 per net ton
- Chinese-built vessels: $18 per net ton or $120 per container, whichever is higher
More information can be found at USTR’s website about this investigation and the measure to increase shipbuilding in the U.S.
