Tariff Tensions Escalate in the E.U. and Canada, Others Simmer

The ongoing evolution of the Trump Administration’s trade policy continued this week as tariffs on Steel and Aluminum imported into the U.S. went into effect on a global scale. As reported by our colleagues with the American Hardwood Export Council (AHEC), on March 12, the E.U. announced it would target American-made goods, including  wood products, to retaliate against U.S. tariffs starting on April 1 with more later in the month.  In response to this action, the President threatened additional tariffs of up to 200% on European wines and liquors.  To view the notice from AHEC, please click here.   Talking Points developed by AHEC to facilitate industry response may be accessed here. Canada also added tariffs to another $20.6 billion in exports to the U.S.  Canada’ list of retaliatory tariffs includes wood products.  Canada also initiated a complaint with the World Trade Organization regarding U.S. tariffs on steel and aluminum. While China has announced tariffs on a limited number of products including logs, lumber does not seem to be a current target.  Mexico has not taken retaliatory action but has stated they are considering what actions to take and when.

House Narrowly Passes Government Funding Bill, Punts to the Senate

On March 11, the House passed a Continuing Resolution (CR) to fund federal programs for an additional six months, by a vote of 217 to 213.  While maintaining funding levels for USDA and other federal agencies in charge of domestic programs, the House-passed bill includes a handful of extras from the Administration, including increased spending on border security and defense.  Tariff issues also made waves during the debate when House Republicans inserted a provision that would prevent lawmakers from introducing resolutions to reverse the Administration’s trade policies.   The House vote tees up a possible show-down in the Senate, where Democratic leaders have been talking about opposing the bill but appear to be poised to adopt it to prevent a government shutdown. 

The Federation Needs Your Feedback on Tariffs!

Since taking office six weeks ago, the Trump Administration has pursued an aggressive trade policy agenda including imposing tariffs on some the Hardwood industry’s most important trading partners, including China, Canada, and Mexico.  The Hardwood Federation team is meeting with Administration trade officials, including those in the U.S. Trade Representative, Department of Agriculture, and on Capitol Hill.  We need your anecdotes on the impacts of these tariffs on your operations.  

• What were the impacts on your business due to the 2018 trade war? Did you lose markets? Cut staff? Reduce operations?
• Have you had customers cancel or curtail orders either as a result of recent action or in anticipation of eventual tariffs?
• What measures do you anticipate taking to address the impacts of these recent trade and tariff policies?
• What other information or concerns can you share with us?

Your feedback is critical.  Please send your stories at your earliest convenience at Hardwood.Federation@hardwoodfederation.com. 

Register Now for Fly-In 2025

Taxes. Trade. Tariff. Regulations.  Federal policy impacting you and your business is currently being debated on Capitol Hill.  Don’t depend on others to speak for you!  Join the Hardwood Federation’s Fly-In to D.C. May 13-15 for your chance to make your voice heard!

We schedule your meetings based on where you live and work.  You and a group of your peers will visit Congressional offices, share your business story and insight, and become an advocate for policies that support the U.S. hardwood industry.

Registration is now open.  Register for the Fly-In, make hotel reservations, and review the action-packed agenda here.  This is the year to make a difference!  Register today!!

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