President Trump has paused additional tariffs for most counties in the world – keeping the minimum 10 percent across the board reciprocal tariffs announced earlier this month. While pumping the brakes on tariffs in other countries, at least temporarily, Trump hit China hard by increasing that number to 145% on Chinese goods imported to the U.S.

In response, China’s Ministry of Finance matched the U.S.’s increased tariff with a 125% rate on American products, including on hardwoods and other wood-related products.

This back and forth began on April 2, when the Trump Administration rolled out its reciprocal tariffs plan. Days later, Trump announced a 90-day pause on those tariffs for most countries except China. During this pause, a 10% universal tariff will apply as the U.S. pursues more favorable trade deals with more than 75 nations.

However, China was singled out with a new 145% reciprocal tariff—effective immediately. According to the Home Furnishings Association's fact sheet on tariffs, the tariff level was set because of a “lack of respect” from China on global trade practices. The administration, according to the HFA, "made clear that this move is part of a broader strategy to level the playing field. China responded swiftly with its own 84% tariff [now 145]on US goods, intensifying the ongoing trade standoff."

The HFA, a North American trade association dedicated to supporting and advancing the interests of home furnishings retailers, warned its members that these tariffs would mean higher sourcing costs, potential inventory shortages, and a 15% drop in furniture import forecasts for 2025. The association urged its members to reevaluate supply chains, communicate pricing adjustments and why, and prepare for possible freight and logistics delays.

According to the National Hardwood Lumber Association, exports to China have virtually stopped, and the existing ban on U.S. logs remains in place. Even higher tariffs are unlikely, but access to the Chinese market will stay severely restricted. This applies to shipments after April 10 arriving in China after May 13.

“Given that at the current tariff level, there is no market acceptance for U.S. goods exported to China. If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it.”

The situation remains in flux, and it is uncertain what this will mean for the wood industry. For instance, while not wood related, the president walked back tariffs on smartphones and computers from the 125% levies, according to a Customs and Border Protection notice that said the devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China. Trump had previously said that there would be no relief from tariffs on Chinese goods.

Europe pauses countermeasures

Meanwhile, in Europe, the back and forth in trade negotiations, in the wake of Trump halting the escalated tariffs, the European Commission's said that it was pausing its own tariff increases. EU President Ursula von der Leyen of the European Commission said, "We want to give negotiations a chance. While finalizing the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days. If negotiations are not satisfactory, our countermeasures will kick in."