Trump’s New Tariffs on Wood Products Help India Emerge as Key Beneficiary

FDT Bureau

US President Donald Trump announced a set of new tariffs on imported wood and wooden products, a move that could have significant consequences for both US consumers and international exporters. The proclamation, issued under Section 232 of US trade law, sets fresh duties on a range of categories, including softwood lumber, timber, kitchen cabinets, vanities and upholstered wooden furniture.

According to the order, foreign softwood lumber and timber, which are essential raw materials in housing and construction, will now face a 10 per cent tariff. Kitchen cabinets and vanities, which have been at the centre of the US home furnishing surge, will be taxed at 25 per cent, while upholstered wooden furniture will also see a 25 per cent duty. Reportedly, these tariffs officially go into effect on October 14, 2025. The rates will rise further on January 1, 2026, when the tariff on cabinets will climb to 50 per cent and upholstered furniture to 30 per cent, intensifying the cost pressures on US homebuilders and consumers already grappling with rising prices.

While these tariffs are likely to raise domestic costs in the United States, they create a notable opening for India. Policy think tank GTRI (Global Trade Research Initiative) pointed out that Indian wood product and furniture exporters, who were earlier facing prohibitive 50 per cent tariffs, will now benefit from much lower duties in the 10-25 per cent range. This substantial reduction makes Indian exports a far more competitive option for US buyers looking for alternatives in the furniture and cabinetry sectors.

For India, the relief is particularly timely. In FY2025, exports of the affected products to the US totaled USD 654.8 million, with USD 568.3 million in kitchen cabinets and vanities, USD 83.3 million in upholstered furniture, and USD 3.2 million in softwood lumber. With tariffs reduced, kitchen cabinets and vanities will now face 25 per cent duty instead of 50 per cent, upholstered furniture will also see its rate halved to 25 per cent, and softwood lumber exports will be taxed at only 10 per cent.

Reports suggest, these changes are expected to boost India’s position in the US market, especially as other key exporters face varying levels of tariffs. The United Kingdom has been capped at 10 per cent, while the EU and Japan will encounter duties not exceeding 15 per cent, reflecting their preferential trade deals with Washington. By comparison, India’s revised tariff schedule puts it in a competitive band and could redirect US demand toward Indian manufacturers.

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