The Hardwood Federation Newsletter

President Issues Lumber Executive Orders

On Saturday, March 1, President Trump signed two Executive Orders affecting the U.S. timber industry. The first Order looks into national security implications of wood imports including lumber and wood products. The second calls for streamlining timber harvests on federal lands, something the Hardwood Federation has advocated for over the years.

The Hardwood Federation will reach out to Commerce and Agriculture contacts to ensure that the Departments better understand the ultimate goal of these orders and to ensure that those researching and preparing reports consider the differences between hardwood and softwood markets, both domestically and internationally. To view a summary of the Executive Orders, please click here.

From the Executive Director: Meeting Congress on Trade Issues

As trade continues to be a source of serious concern throughout the hardwood industry, the Hardwood Federation is making the rounds on Capitol Hill to make sure our friends and allies are fully briefed. We have had frank discussions with senior staff reporting to House Agriculture Committee Chair GT Thompson, Senate Agriculture Committee Chair John Boozman, and House Ways and Means Committee Chair Jason Smith.  HF Executive Director Dana Lee Cole has also had conversations with House Natural Resources Chairman Bruce Westerman (R-AR).  We focused on two key issues during these meetings:

·         The potential impacts of an extended global trade war on the U.S. hardwood industry and our proposed financial relief formula should retaliatory tariffs be imposed.

·         The delay in distribution of foreign market development funds to the American Hardwood Export Council.

Regarding the first, offices understand the potential impact of a trade war.  They agreed that proposing solutions now rather than later is a good move.  Although providing relief to the agriculture community is under consideration, just where those funds will come from is unknown.  In 2019, $30 billion in relief to row crop farmers came from the Commodity Credit Corporation (CCC), however the CCC fund now sits at $4 billion and unless it is replenished, other options will have to be identified. 

We have also taken the opportunity to push our messages even when the meetings aren’t specifically about tariffs. Senator Tom Cotton (R-AR) also called Federation staff into his office to ask about our position on the E.U. Deforestation Regulation.  He and his team are interested in helping and they indicated they are thinking of how to approach the White House about putting pressure on the E.U. during expected trade discussions. The Federation shared the work the American Hardwood Export Council has done on the ground in Europe as well as the Hardwood Federation’s engagement with other Forest Products associations to coordinate outreach to Congress and the Administration. (See below) Before leaving the office, we also took the opportunity to mention the tariff-related concerns about retaliation as noted above.   

As noted below, the U.S.D.A. has freed up the funds that support AHEC and we are pleased that this one hurdle has been cleared.  However, the greater threat presented by wide ranging global tariffs continues. Now that key political appointees are in place at U.S.D.A, including Secretary Brooke Rollins, the Federation will be scheduling meetings to educate them about our unique challenges regarding the Administration’s trade policies.

Obviously, there is much work to be done in this space and many more offices to visit.  The Hardwood Federation team will continue to traverse the Hill...but we strongly encourage you and your team to consider joining us for the Fly-In on May 13-15.  Details are below...don’t delay!  If there was ever a time...and an issue...to make to the effort to come to D.C. it is now!

USDA Resumes Hardwood Export Funding for 2025

On February 27, the American Hardwood Export Council (AHEC) announced that they would be receiving funding allocations for 2025 from USDA and resume normal operations.  The uncertainty and confusion related to the funding of AHEC programs began on January 27, when the White House Office of Management and Budget (OMB) issued a memoranduminstructing federal agencies to suspend allocation 2,600 federal financial assistance and grant programs pending a review to determine whether they comply with a flurry of executive orders the president issued since starting his second term. For the next several weeks, the Hardwood Federation reached out repeatedly to Ag Committee members including House Chairman GT Thompson (R-PA), Senate Chairman John Boozman (R-AK) to seek clarifications of the broad funding freeze. Acknowledging an end to the state of uncertainty, AHEC also announced that this week there will be an updated 2025 Activity Calendar on the www.ahec.orgwebsite.

February Has Shaped Up to be Trade Month in Washington

To better understand the chaotic pace of tariff policy announcements this year, it’s helpful to unpack the activity by dividing specific trade actions into categories in a sequential timeline.  We hope you can use the below summary as a guide to all the twists and turns on trade, which have been changing on a daily basis. 

Canada and Mexico:   President Trump jump-started the tariff process by announcing initial tariffs on Canada and Mexico to begin on Feb. 1.  Following outreach from Canadian and Mexican leaders, however, the Administration pushed back the effective date to March 4. After announcing on February 27 that the tariffs would be suspended through April 2, the Administration later clarified that the effective date will in fact be March 4.  Both countries have promised retaliatory action should U.S. tariffs move forward.  Canada’s retaliatory list includes a 25% tariff on wood and products from the U.S. including hardwoods.

China: Ten percent tariffs on Chinese imports to the U.S. also went into effect on February 1, prompting retaliatory tariffs on a limited set of products from China, which went into effect on February 10. On February 27, the President announced an additional 10% tariff on goods from China, which will be effective March 4.  The Chinese have imposed $14 Billion in retaliatory tariffs to date.  Chinese reaction to the latest White House action, including tariffs on U.S. hardwoods is unclear at this time.

European Union (E.U.):  Although the President talks regularly about the trade imbalance between the U.S. and the E.U., no formal announcement has been made targeting the Europeans.  When asked by reporters on February 26 when tariffs could be imposed, the President replied vaguely that it would be “soon” and set at the rate of 25%.   

Aluminum and Steel Tariffs: In addition to imposing tariffs on specific countries, on February 10, the Administration announced it would impose a 25% tariff on global steel and aluminum imports, which are scheduled to go into effect on March 12. Please note that while Canada and Mexico have a temporary suspension on general tariffs, they are subject to the product-specific tariffs on aluminum and steel.  The same goes for the E.U. 

Reciprocal Tariffs – Casting an even wider net on tariffs, on February 13, President Trump announced that the U.S. Trade Representative (USTR), Department of Commerce and other agencies, would move forward with reciprocal tariffs on a country-by-country basis.  Reciprocal tariffs could be imposed in a number of ways. They could be applied to specific products, to entire industries, or as an average tariff on goods arriving from a specific country. The anticipated action will follow submission of reports from federal agencies, analyzing the extent of trade imbalances between the U.S. and specific trading partners. After submission of the reports, which are due April 1, the White House directiveorders federal agencies to “initiate … all necessary actions to investigate the harm to the U.S. from any non-reciprocal trade arrangements adopted by the trading partners.”

Forest Products Industry Urges Administration to Engage EUDR

On February 28, the Hardwood Federation joined 60 wood products allies in a letter to President Trump urging the Administration to reach out to E.U. counterparts and relay concerns about the impact of the European Union’s Deforestation Regulation (EUDR) on U.S. exports, especially through its geolocation requirements. Hardwood Federation member associations were also invited to sign on to the letter.  The industry groups characterize the EUDR as being overly prescriptive while failing to acknowledge America’s role as a “world class leader in modern, sustainable forest management.”  The groups further urge the President to add the EUDR to his “to do” list on any upcoming negotiations with the E.U.  The EUDR is currently scheduled to take effect on December 30, 2025. 

Administration Proposes Fees on Chinese Ships, Dockworkers Approve Labor Deal

On February 21, the U.S. Trade Representative (USTR) announced it would propose fees on Chinese ships and operators in response to China’s growing maritime influence, which the Administration deems to be an unreasonable risk to U.S. commerce. This is causing major concern from U.S. retailers, who fear the imposition of such fees will spike costs, which will be passed along to the consumer.  Exporters, including those in the hardwood industry, could also face significantly higher rates for cargo shipments to global markets. The Hardwood Federation is engaged with the Retailers Association’s transportation coalition and will provide written comments on the proposal.  

On a separate track, the International Longshoremen’s Association, which represents dockworkers at U.S. ports, approved a labor agreement with the U.S. Maritime Alliance, which represents port operators. 

Senate, House Lawmakers Meander Toward Budget, Tax Deal

On February 25, the House narrowly approved its budget resolution by a vote of 217 to 215.  This brings lawmakers one step closer in a chaotic process to attempt to craft a final, bicameral resolution.  Moving through the process known as “budget reconciliation,” the procedure would allow a budget bill to pass the Senate with a simple majority vote.  Next crucial steps include negotiations with the Senate, which passed its version on February 21.  The major difference between the two frameworks is that the House bill bundles key priorities into a single package, including defense, border security, energy and tax reform.  The Senate version, however, would bifurcate the issues, with defense, border security and energy moving in one package while pushing tax reform into a separate vehicle. Restoring key business tax benefits that have been allowed to lapse or begin phasing out, including 100 percent bonus depreciation and extending the 20 percent small business deduction, are key objectives for the 119^th Congress. Much work needs to be done, not to mention a meeting of the minds on the extent of spending cuts, before Congress reaches agreement on a final package. The Federation will keep you posted on developments. 

House Passes Midnight Rules Relief Act

On February 12, the House approved the “Midnight Rules Relief Act” (H.R. 77) to dramatically expand Congress’s ability to roll back regulations approved by the prior administration. Currently, Congress may pass a Congressional Review Act (CRA) resolution that overturns on a case-by-case basis regulations adopted in roughly the last 6 months of the previous President’s term. H.R. 77 would expand on this authority to apply to those regulations adopted during the previous year of a President’s final year in office and allow Congress to bundle many rules together and overturn them in a single vote. The final vote was 212-208. There is little hope that this bill will attain the necessary 60 votes in the Senate for final passage, but it serves as a messaging bill for House members as they look forward to the 2026 elections.

Administration Suspends Corporate Transparency Reporting Requirements

On February 27, the Treasury Department announced that it would suspend enforcement of reporting requirements under the Corporate Transparency Act (CTA) while the agency engages in the process of developing a rule with a much narrower scope. This falls in the wake of a key vote on February 10, when House lawmakers passed the Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736).  The bill would push back the CTA’s filing deadline for businesses established before 2023 until January 1, 2026. The CTA became effective at the end of 2024 and requires small businesses to report the personal information of their owners and managers to the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department. The new, proposed rule is expected to be rolled out by March 21. Stay tuned for details. 

Administration Scales Back NEPA

Following up on an Executive Order on energy access and permitting issues, on February 19 the Administration issued an “interim rule” stating that it would revoke regulations issued by the White House Council on Environmental Quality (CEQ) pursuant to the National Environmental Policy Act (NEPA), the umbrella statute governing the issuance of environmental permits for large scale projects, including timber harvest.  This action follows up on two federal court decisions calling into question the CEQ’s authority to promulgate its own NEPA rules, including regulations issued last year that would add red tape to an already lengthy process.  Furthermore, the courts stated that CEQ would be relegated to the role of reviewing NEPA rules issued by other federal agencies.  As the dust continues to settle on this major action to scale back a cumbersome permitting statute, the Federation will keep you posted on developments. 

Senate Continues to Confirm Key Administration Officials

The U.S. Senate has been active this month processing nominations to fill President Trump’s cabinet. Former Wisconsin Representative Sean Duffy has been confirmed to be Transportation Secretary. During his time in the House, Duffy led on the Safe Routes Act—truck weight reform legislation that would allow trucks travelling at the maximum gross vehicle weight on state roads to travel at that weight on the federal interstate highway system. We hope he will support pilot programs that may be implemented through executive action. Secretary Duffy is also close personal friends with several in our sector. The Senate also confirmed Lee Zeldin, a former New York congressman, to lead the Environmental Protection Agency.  Zeldin was not known for being active on or leading environmental legislation during his time in Congress, but we hope to make progress on EPA recognizing the carbon neutrality of biomass, among other issues. 

At the Department of Interior, the Senate confirmed former North Dakota Governor Doug Burgum. He will oversee Endangered Species Act implementation, which is critical to hardwoods. Jamieson Greer has been confirmed for U.S. Trade Representative. Also notable is the nomination of former Rep. Lori Chavez-DeRemer to be Secretary of Labor, who cleared her committee vote on February 27. She was the Republican lead in the House on the Jobs in the Woods Act, a bill to support workforce training for jobs in forestry and in sawmilling. On the USDA front, Brooke Rollins, a former White House advisor during Trump’s first term, was sworn in on February 13, and will be joined by a new forest chief, Tom Schultz, who has more than 25 years of land management experience in the South and West. Schultz replaces former forest chief Randy Moore, who has retired after more than 40 years with the forest service.

Do These Issues Impact Your Business? 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!!