Trump Announces New Wood Product Tariffs, Indian Exporters To Face Cost Pressure

U.S. President Donald Trump has announced new import duties on wood and wooden furniture products. Starting October 14, 2025, a 10 percent tariff will be imposed on softwood timber and lumber, while 25 percent duties will apply to kitchen cabinets, vanities, and upholstered wood furniture. These measures are aimed at protecting U.S. manufacturing and jobs, and they come under the Trade Expansion Act, Section 232, which allows tariffs on imports affecting national security.

More Tariffs Coming in 2026

Trump has also stated that from January 1, 2026, additional tariffs will be added on some finished wood products. This move follows a U.S. Department of Commerce investigation that found heavy imports were hurting domestic supply chains and industries.

Who Gets Exempted?

Countries like the UK, EU, and Japan may be exempt due to existing trade agreements. But for most other nations, including India, the full tariff will apply. This could make Indian exports to the U.S. more expensive.

Impact on Indian Companies and MSMEs

India exports a significant amount of wooden furniture, cabinets, and related products to the U.S. With these new duties, companies will either need to absorb the cost or pass it on to American buyers. This could lower demand and reduce orders from the U.S. market.

Large Indian companies like Godrej Interio, Greenply Industries, Century Plyboards, Durian, Nilkamal, and Featherlite all export to the U.S. They will face pressure due to higher costs. Thousands of MSMEs across Jalandhar, Rajasthan, Karnataka, and Kerala, which depend heavily on U.S. orders, will also be affected. The Indian wooden furniture export sector is MSME-driven and supports millions of jobs.

What Lies Ahead for India

If no relief is provided through a new trade deal between India and the U.S., Indian exporters will likely shift focus to UK, EU, and Japan, where tariff risks are lower. But for now, the Indian wooden furniture sector faces tough times as it tries to stay competitive in the U.S. market under these new tariff rules.