Lead: In December 2025, President Donald J. Trump signed a Proclamation under Section 232 of the Trade Expansion Act of 1962 to postpone a scheduled tariff increase on certain wood-derived products. The measure keeps the existing 25% tariff on specified upholstered furniture, kitchen cabinets, and vanities in place and delays a planned rise that had been set for January 1, 2026 by one year. The Administration says the pause is intended to allow continued negotiations with trade partners over reciprocity and national security concerns linked to wood-product imports.
Key Takeaways
- The President invoked Section 232 to delay tariff increases on specific wood-derived goods in December 2025, extending the timetable by one year.
- The current 25% tariff on certain upholstered furniture, kitchen cabinets, and vanities, imposed under the September 25, 2025 Proclamation, remains effective.
- A separate September 29, 2025 Proclamation had scheduled an increase in tariff rates to take effect on January 1, 2026; that increase is now delayed until January 1, 2027.
- The Commerce Department’s Section 232 investigation concluded that the quantities and circumstances of wood-product imports threatened to impair U.S. national security.
- The Administration cites concerns about overreliance on foreign suppliers, foreign subsidies, and predatory trade practices that it says weaken the U.S. wood-products sector.
- The delay is explicitly framed to provide more time for negotiations with trading partners over trade reciprocity and security-related supply-chain issues.
- The action builds on prior Section 232 measures used for steel, aluminum and other sectors and comes as the Commerce Department pursues additional sectoral probes.
Background
The Proclamation uses Section 232 of the Trade Expansion Act of 1962, a statute that lets the President restrict imports when the Secretary of Commerce finds they threaten national security. Earlier in 2025 the Secretary completed a Section 232 investigation covering timber, lumber and derivative products, and formally reported findings about import volumes and circumstances. Those findings prompted the Administration to set tariffs and to schedule a subsequent rate increase that had been slated for January 1, 2026 under a September 29, 2025 proclamation.
The current tariffs—set at 25% for specified upholstered furniture, kitchen cabinets and vanities—were put into effect under a September 25, 2025 Proclamation. The White House and Commerce Department say those steps are part of a broader effort to shore up domestic manufacturing, protect supply chains used by defense and construction sectors, and counteract foreign-government subsidies. Industry groups, trade partners and some builders had warned that abrupt tariff changes could disrupt supplies and raise costs, prompting the Administration to allow more time for talks.
Main Event
In December 2025, the President signed a new Proclamation invoking Section 232 to delay the tariff increase originally scheduled for January 1, 2026. That delay keeps the existing 25% duties in place for another year while negotiations continue with trading partners. The White House framed the move as a tactical pause intended to preserve leverage in talks on reciprocity and to prevent sudden market shocks for domestic buyers and manufacturers.
The Administration reiterated its view that heavy reliance on imported timber and lumber risks U.S. industrial resilience, citing potential effects on construction, defense-related supply chains and broader economic competitiveness. Officials pointed to foreign subsidies and trade practices they describe as undercutting U.S. producers. At the same time, Commerce continues to examine related industries and supply chains as part of a broader national-security trade review program.
The Proclamation is linked to a series of prior actions that used Section 232 authority to impose or maintain tariffs in other sectors. Officials said the step is not final policy on wood products but a procedural decision to give negotiators additional time to seek outcomes the Administration calls reciprocal and secure. Industry groups and some trading partners have signaled they will continue dialogue but warned of possible price and supply effects if tariffs remain long-term.
Analysis & Implications
The immediate effect is to freeze the tariff picture for affected categories through the end of 2026: importers will continue to pay the 25% duty rather than facing the higher rates planned for 2026. That reduces short-term market disruption for U.S. buyers who had warned about winter-season sourcing and construction timetables. For domestic producers, the maintenance of tariffs preserves current protective measures while negotiations seek longer-term remedies to unfair competition and subsidy issues.
Strategically, the Administration frames the intervention as protecting national security by reducing dependence on foreign suppliers for materials used in construction and defense. The Commerce Department’s Section 232 finding—an administrative determination, not a criminal or civil judgment—serves as the legal basis for the President’s tariff authority. Use of Section 232 in this and prior cases signals a continued willingness to deploy broad trade tools for industrial-policy objectives, which may encourage other countries to seek reciprocal protections or to retaliate with countermeasures.
Economically, the impact will differ across sectors. Large-scale homebuilders and manufacturers that rely on imported cabinets and upholstered components may see costs remain elevated relative to pre-2025 levels, while domestic mills and processors could gain pricing advantage and market share. However, tariffs also can increase input costs for downstream industries, potentially slowing housing starts and affecting consumer prices. The balance of these effects will depend on the duration of measures and the outcomes of negotiations.
Comparison & Data
| Action Date | Item | Effect |
|---|---|---|
| September 25, 2025 | Initial 25% tariff imposed | 25% duty on certain upholstered furniture, kitchen cabinets, vanities |
| September 29, 2025 | Proclamation scheduled tariff increase | Planned higher rates to take effect Jan 1, 2026 |
| December 2025 | New Proclamation (this action) | Delays the Jan 1, 2026 increase for one year; 25% remains in effect |
The table above summarizes the sequence of Proclamations and the practical outcome for affected importers. While the 25% rate stays constant for now, the Administration has signaled potential further actions if negotiations do not yield satisfactory terms. Analysts will be watching import volumes, domestic production metrics and price indices for cabinets and furniture in 2026 to assess the policy’s market impact.
Reactions & Quotes
Officials framed the action as a negotiated interlude rather than a policy reversal, emphasizing the Administration’s dual goals of security and stronger U.S. industry.
“The Secretary concluded the present quantities and circumstances of imports threaten to impair national security.”
U.S. Department of Commerce (Section 232 finding)
This line references the Commerce Department’s formal finding that provided the legal basis for tariffs under Section 232. The Department’s administrative determination is central to the President’s authority to adjust import measures on security grounds.
“We are delaying a tariff increase to allow productive negotiations with trade partners to continue.”
The White House (Proclamation summary)
The White House framed the delay as a tactical step aimed at giving negotiators additional time, rather than an abandonment of the underlying trade concerns. Industry and trade groups have offered mixed responses, noting both the need for supply stability and the ongoing harms they attribute to subsidized foreign competition.
Unconfirmed
- Whether negotiations will produce binding agreements with trading partners within the one-year extension remains unresolved; no public timetable has been released.
- The precise terms or targets the Administration seeks from trading partners (for example, specific quota levels or subsidy remedies) have not been publicly disclosed in detail.
- The potential for retaliatory measures by trading partners in response to extended tariffs is possible but not yet confirmed.
Bottom Line
The December 2025 Proclamation leaves the current 25% tariffs in place while postponing a planned increase that had been scheduled for January 1, 2026. The move is presented as a negotiated pause designed to preserve leverage in talks and to limit immediate market disruption for U.S. buyers and builders.
Longer term, the outcome will hinge on the success of ongoing negotiations and on whether the Administration pursues further Section 232 actions or other trade remedies. Stakeholders should monitor Commerce reporting, import statistics and industry price indicators through 2026 to evaluate whether the extension achieves its stated goals of stronger domestic industry and more secure supply chains.