Economy

Trump’s New Tariffs: Will Rising Wood and Furniture Costs Derail the Housing Market?

Trump imposed tariffs on wood products, including lumber, to boost U.S. industries, starting Oct 14, 2025.

September 30, 2025, 7:17 AM

A modern kitchen features light blue cabinets, a gas stove, and white subway tile backsplash.

A beautifully designed modern kitchen with light blue cabinetry, a gas range, and a white subway tile backsplash. By MDL.

Executive Summary

President Donald Trump has ordered new tariffs on various imported wood products, including lumber, timber, kitchen cabinets, and upholstered furniture, set to take effect on October 14, 2025.

The new tariffs include a 10% charge on softwood lumber and timber, and a 25% tariff on kitchen cabinets and upholstered furniture, with these rates scheduled to increase further on January 1, 2026.

While Trump cites national security and strengthening domestic industries as the rationale, industry experts caution that these measures could lead to increased homebuilding and furnishing costs, potentially exacerbating housing affordability issues.

The Story So Far

President Trump has ordered new tariffs on imported wood and wooden products, including lumber and furniture, citing national security and the need to strengthen domestic industries. This follows a Commerce Department investigation into threats posed by imported lumber and aligns with his administration’s broader strategy to protect American manufacturing from foreign competition, building on previous tariffs imposed on imports from countries like China and Vietnam. He argues that foreign manufacturers have “flooded” the U.S. market, despite industry concerns that the U.S. currently lacks the industrial capacity to fully meet demand without imports, particularly from major suppliers like Canada.

Why This Matters

The tariffs ordered by President Trump on imported wood products, including lumber, cabinets, and furniture, are poised to significantly increase costs for consumers in the homebuilding and furnishing sectors, potentially worsening the housing affordability crisis. While intended to bolster domestic industries, these measures could strain the U.S.’s current industrial capacity, which relies heavily on imports, and have already prompted negative market reactions among major retailers.

Who Thinks What?

President Donald Trump’s administration asserts that the new tariffs are crucial for national security, to bolster industrial resilience, create high-quality jobs, and increase domestic capacity, arguing that foreign manufacturers have “flooded” the U.S. market.

Industry experts, economists, and homebuilders warn that these tariffs will lead to increased lumber and building costs, potentially worsening the housing affordability crisis, and highlight that the U.S. lacks the industrial capacity to fully meet demand without imports.

President Donald Trump has ordered new tariffs on various imported wood and wooden products, including lumber, timber, kitchen cabinets, and upholstered furniture, citing national security and the strengthening of domestic industries. These measures, announced on Monday and set to take effect on October 14, 2025, are anticipated to impact costs within the homebuilding and furnishing sectors.

Tariff Details and Implementation

The new tariffs include a 10% charge on foreign softwood lumber and timber, which are crucial for construction. Additionally, a 25% tariff will be imposed on kitchen cabinets, vanities, and upholstered wooden furniture. These rates are scheduled to increase further on January 1, 2026, with the tariff on cabinets rising to 30% and upholstered furniture to 50%.

Trump initially signaled these tariffs in a Truth Social post last Thursday. The administration’s proclamation stated that these actions aim to bolster industrial resilience, create high-quality jobs, and increase domestic capacity utilization for wood products, thereby allowing the United States to meet its own consumption needs and boost exports.

Rationale for New Tariffs

The President’s order follows a March directive to the Commerce Department, which investigated potential national security threats posed by imported lumber. Much of this imported lumber originates from Canada, a country Trump has frequently criticized regarding its significant wood exports to the U.S.

Trump maintains that the United States possesses sufficient timber resources to fulfill its domestic requirements and has previously lambasted Canadian tariffs on U.S. lumber. He argues that foreign manufacturers have “flooded” the U.S. market, necessitating protective measures for American manufacturing.

Industry Concerns and Economic Impact

Industry experts, however, caution that these tariffs could lead to increased lumber and building costs, potentially exacerbating the ongoing housing affordability crisis. While the U.S. has a vast number of trees, economists and homebuilders point out that the country currently lacks the industrial capacity to fully meet demand without imports.

The United States relies on Canada for approximately 30% of its annual softwood lumber supply, with Canadian imports already subject to existing countervailing and anti-dumping duties of 14.5%. The new tariffs are expected to add further pressure to prices.

Rising Furniture Costs

Furniture prices have already seen considerable increases over the past year, partly due to previous tariffs imposed by the Trump administration on imports from China and Vietnam. According to the Bureau of Labor Statistics, overall furniture costs rose 4.7% last month compared to August 2024, with living room and dining room furniture experiencing a 9.5% increase.

China and Vietnam were the top two sources of imported furniture for the U.S. last year, each exporting approximately $12 billion worth of furniture and fixtures. Prior to these tariffs, furniture prices had largely declined for two and a half years. Shares of retailers like Wayfair, RH, and Williams-Sonoma reportedly tumbled in recent days following Trump’s announcements.