by Imports of kitchen cabinets are subject to 25% rate, which rises to 50% Jan. 1, 2026
WASHINGTON — With the recent announcement regarding Section 232 tariffs as high as 30% impacting imported sofas, chairs and sectionals, most of the industry’s focus has been on those products and the impact for retailers and consumers alike.
And for good reason: With most of the increase taking effect this week, companies likely will need to adjust pricing of imported goods before the High Point Market.
But there is another area of concern particularly as it relates to imports of kitchen cabinetry and imports of softwood timber and lumber, both of which are critical components of single and multifamily homes.
According to the president’s proclamation, imports of kitchen cabinets will be subject to a 25% duty as will imported cabinet components. This will rise to 50% by Jan. 1, 2026.
In addition to fully completed, or assembled cabinets, the tariff will impact things such as imported wood panels, shelves and doors that are shipped flat pack to the U.S. market. It also impacts parts such as imported plywood/engineered wood, plus imported veneers and laminates that are typically used as surface materials in kitchen cabinetry.
Meanwhile, imports of softwood lumber and timber will face a 10%, duty, which will be on top of existing anti-dumping, countervailing or other duties and charges applicable to the segment, according to the president’s proclamation.
In Canada’s case, countervailing duties on softwood lumber already are rising from 6.74% to 14.63%, according to a recent article by Jesse Wade, director of trade and tax policy analysis for the National Association of Home Builders. Combined with current 20.6% anti-dumping duties, Wade notes, the anti-dumping and countervailing duties will reach 34.2%, up from 14.4% currently.
And based on the wording of the president’s proclamation, they could reach 44.2% with the 10% tariff.
Thus, as these costs rise, so could the cost of a home that uses these imported types of materials.
The NAHB acknowledges that as details on the tariffs are still unclear, it is working to get additional information from the Trump administration to “clarify and quantify the potential effects of these new tariffs on housing.”
But if the details of the tariffs remain somewhat vague, the implications are clear: Both renovation projects involving cabinetry and overall new housing prices could go up, particularly given the importance of both softwood timber/lumber and cabinetry to homebuilding and renovation projects alike.
This is all worth noting particularly as housing affordability remains a key concern, particularly for younger homebuyers: If housing prices continue to rise, that also leaves a lot less money for things such as furniture if they are even able to afford a home at all.
Here, the NAHB has been proactive in communicating principles that promote housing affordability. For example, it has been part of a coalition of some “60 housing experts, advocates and industry leaders” who plan to develop solutions aimed at boosting housing supply. Part of the Principles for Enhancing Housing Availability and Affordability developed by Pew Foundation’s Housing Policy Initiative, it includes four key “common-sense” housing solutions:
+ Enable more housing types: Building starter homes, townhomes, duplexes and triplexes, smaller-scale accessory dwelling units, manufactured housing, condominiums and apartment buildings can provide individuals with more choices on where to live, how much to spend and also increase proximity to jobs, family, retail and public transportation.
+ Avoid inflexible mandates: Loosening or eliminating requirements and restrictions, such as off-street parking, can make the housing market more efficient and provide community leaders, residents and builders more flexibility to develop lower-cost housing options.
+ Spur the creation of apartment buildings and townhouses in high-use areas: This includes near bus and train stations, near retail developments/business districts, and in underutilized commercial and light manufacturing zones to help stabilize housing costs.
+ Lower administrative barriers: Speed up homebuilding by allowing “by right” permitting for new homes that meet zoning requirements; creating an efficient process for obtaining building and occupancy permits; creating a clear permitting process for factory-built homes; minimizing upfront development and impact fees and keeping property taxes reasonable.
And to help stem the higher costs of softwood lumber from countries such as Canada, it has come up with recommendations on diversifying how it sources such raw materials. Here, Wade shared some possible solutions, particularly as “softwood lumber prices have been especially volatile in recent years largely because of increased demand, rising tariffs, supply-chain bottlenecks and insufficient domestic production.”
Here, he said, NAHB has advocated for the following actions:
+ Negotiate a long-term deal with Canada to reduce tariffs and boost imported lumber.
+ Increase domestic production by seeking higher targets for timber sales from publicly owned lands and opening up additional federal forest lands for logging.
+ Reduce U.S. lumber exports to China and other international clients.
+ Seek out new markets to reduce our nation’s reliance on Canadian lumber imports and make up for our domestic shortfall.
+ Identify new markets (besides Canada) and work with countries already exporting softwood lumber to the United States to increase their exports here.
“These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” said NAHB Chairman Buddy Hughes in a post that also noted that the “U.S. imports roughly one-third of the lumber it consumes because America does not produce enough softwood lumber to meet domestic demand.” The statement went on to say that Canada accounts for nearly 85% of all U.S. lumber imports.
Of course, tariffs aim to protect existing U.S. jobs, while also bringing more jobs back to the U.S., a point the president drives home whether he’s talking about furniture or cabinetry.
Yet the NAHB notes that while the lumber tariff seeks to protect domestic lumber firms, it said that data from the first quarter shows “U.S. sawmills are operating at just 64% of their potential capacity, a figure that has dropped steadily since 2017. It will take years until domestic lumber production ramps up to meet the needs of our citizens. In the interim, imports of softwood lumber are vital to build, remodel and repair American homes and apartments.”
“NAHB believes that imposing new lumber tariffs that make housing more expensive is not the answer,” NAHB continued. “We are urging the administration to continue its efforts to increase the supply of timber from public lands in an environmentally responsible manner, and to quickly enter into negotiations with Canada and other global trading partners to resolve ongoing trade issues in a fair and equitable manner that eliminates tariffs on lumber and other building materials.”
