US delays wood tariff hike, gives temporary relief to Vietnam's wood sector in 2026

The ministry said that U.S. President Donald Trump on Wednesday signed a proclamation adjusting import tariff policies on timber, lumber, and their derivative products under Section 232 of the Trade Expansion Act of 1962.

The move postpones higher tariffs on several finished wood products, including upholstered chairs, kitchen cabinets, and bathroom cabinets, from January 1, 2026 to January 1, 2027.

The delay follows a proclamation issued by the U.S. in September 2025 outlining plans to raise import tariffs on raw timber from 10 percent to 30 percent and on deeply processed wood products from 25 percent to 50 percent starting in early 2026.

According to the ministry, the U.S. said the decision to defer implementation is intended to create room for ongoing trade negotiations while supporting broader objectives related to economic security and supply chain stability.

Future tariff levels will depend directly on the outcomes of these talks, the ministry said, underscoring that the U.S. continues to use tariffs as a strategic negotiating tool rather than solely as a protectionist measure.

The postponed wood tariff hike helps Vietnamese exporters avoid a tariff shock at the start of the year, allowing them to maintain orders, stabilize prices, and gain additional time to adjust market strategies.

The ministry noted that this postponement is unrelated to final rulings by the U.S. Supreme Court on reciprocal tariff orders expected in the coming weeks.

The U.S. is expanding investigations under Section 232 to more imported goods and has not ruled out further tariff adjustments in 2026 to support negotiation objectives or respond to domestic economic and political pressures, the ministry stated.

With the tariff hike delayed, the ministry said Vietnam's wood sector in 2026 should be seen as entering a period of temporary stability but not full security.

The ministry underscored the need for closely monitoring U.S. policy developments, maintaining proactive dialogue with American counterparts, and planning long-term response scenarios.

The ministry also expects 2026 to be a transition year for the U.S. furniture manufacturing industry, with import demand for wood likely to increase.

However, Vietnamese companies will need to carefully manage cost pressures, pricing strategies, and operational efficiency to support revenue recovery, expansion, and reinvestment.

According to the General Department of Vietnam Customs under the Ministry of Finance, the country's cumulative exports of wood and wood products from early 2025 through December 15 reached US$16.3 billion, up 5.6 percent year on year.

The U.S. remains one of Vietnam's most important export markets for wood and wood products.