10/03/2025
U.S. Announces New Section 232 Tariffs on Timber, Lumber, and Wood Products
Check out this week's Customs Corner to read about new Section 232 tariffs, the government shutdown, and more.
Trade and Customs Updates
1) U.S. Announces New Section 232 Tariffs on Timber, Lumber, and Wood Products
The United States will implement new Section 232 tariffs on timber, lumber, and related wood products starting October 14, according to a recent Proclamation issued by President Trump. The tariffs will be set at 10% for timber and lumber, 25% for upholstered furniture, and 25% for wooden cabinets and vanities.
Beginning January 1, 2026, tariffs on upholstered furniture will rise to 30%, while those on wooden cabinets and vanities will jump to 50%, unless the U.S. reaches agreements with exporting countries to address national security concerns related to wood product imports.
Details regarding the specific tariff subheadings affected are provided in an annex to the proclamation. Notably, the tariffs for goods from the European Union and Japan will be capped at 15%, including the most-favored nation (MFN) rate, while imports from the United Kingdom will face a rate not exceeding 10% above the MFN rate.
Products subject to these Section 232 tariffs will not be affected by reciprocal tariffs or by additional International Emergency Economic Powers Act (IEEPA) tariffs imposed on Brazil and India for imports of Russian oil. When goods are subject to both these tariffs and Section 232 tariffs on autos and auto parts, only the auto-related tariffs will apply. For goods also subject to IEEPA tariffs on Canada and Mexico, only the new timber and lumber tariffs will be enforced.
The proclamation also removes more than 150 tariff subheadings from Chapter 44 from the list of goods exempt from reciprocal tariffs, effective October 14. Companies may use drawback procedures; however, any goods subject to these tariffs and entered into a foreign-trade zone on or after October 14 must be entered under privileged foreign status.
Key Factors:
As of October 14, 2025, the HTS listed in the Annex will be subject to:
- 10% duty on softwood timber and lumber
- 25% on certain upholstered goods. This is due to increase to 30% on 1/1/26.
- 25% on kitchen cabinets and vanities. This is due to increase to 50% on 1/126.
The HTS in the Proclamation are:
- Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on and after 12:01 eastern daylight time on October 14, 2025
- Still subject to CN IEEPA
- Still subject to Section 301 (if from CN)
- Not subject to country specific reciprocal tariffs
- Not subject to Brazil IEEPA
- Not subject to India Russian Oil IEEPA
- If subject to Section 232 auto/auto parts and Section 232 timber/lumber, then only Section 232 auto/auto parts will apply
- If subject to CA or MX IEEPA then CA MX IEEPA does not apply, and the Section 232 timber/lumber will apply
- If COO is UK, then Section 232 timber/lumber shall not exceed 10%
- If COO is EU or JP, then combined column I rate, and Section 232 timber/lumber shall not exceed 15%
- The Section 232 timber/lumber proclamation removes over 150 tariffs from the Reciprocal Annex II list
Reference:
2) U.S. Government Shuts Down After Senate Deadlock; CBP Operations Remain Unaffected
The federal government officially shut down at 12:01 a.m. October 1, 2025, after the Senate failed to reach a budget agreement. While essential government operations will continue, employees performing these duties will not receive pay until the shutdown concludes.
U.S. Customs and Border Protection (CBP) provided an operational update, reassuring stakeholders that no CBP staff have been furloughed and that all agency operations will proceed as usual. CBP also confirmed that regular communication with the trade community, including the issuance of CSMS messages, will be maintained throughout the shutdown.
Outside of CBP, GEODIS has confirmed that USDA, FDA, and FWS operations are continuing as normal; however, CITES processing is currently unavailable.
3) AGOA Expired - September 30, 2025
The African Growth and Opportunity Act (AGOA), a cornerstone of U.S. trade policy with sub-Saharan Africa, expired on September 30, 2025.
Enacted in 2000, AGOA has provided eligible African countries with duty-free access to the U.S. market for thousands of products, supporting economic growth, job creation, and export diversification across the continent. In 2023, AGOA-eligible exports to the United States reached over $6 billion, benefiting sectors such as textiles, agriculture, and automotive parts.
GEODIS has received confirmation from CBP that no official guidance will be issued via CSMS. Effective immediately, entries previously eligible under AGOA should be filed as type 01. Filers attempting to enter goods using the Chapter 98 tariff number or Special Program Indicator “D” will receive error messages.
4) EPA Proposes New Rules on Hydrofluorocarbons, Seeks Input from Refrigeration and AC Industries
The U.S. Environmental Protection Agency (EPA) has announced proposed changes to regulations governing the use of hydrofluorocarbons (HFCs), potent greenhouse gases commonly used in refrigeration and air conditioning. The proposed revisions fall under the Technology Transitions section of the American Innovation and Manufacturing (AIM) Act of 2020, which empowers the EPA to restrict HFC use in specific sectors and applications.
The new proposal responds to administrative petitions and requests from companies and trade associations across various industries, including refrigerated transport (such as intermodal containers), industrial process refrigeration and chillers used in semiconductor manufacturing, retail food refrigeration for supermarkets and remote condensing units, cold storage warehouses, refrigerated laboratory equipment, and condensing units for residential and light commercial air conditioning and heat pumps.
Significantly, the EPA’s proposal would permit the continued installation of previously manufactured and imported residential and light commercial air conditioning and heat pump equipment, providing flexibility for businesses and consumers during the transition.
In addition, the Agency is seeking early public feedback on potential actions to address ongoing supply chain challenges related to certain refrigerant blends.
The proposed changes could affect manufacturers, importers, and users of a wide range of refrigeration and air conditioning equipment, particularly those involved in refrigerated transport, industrial and semiconductor process cooling, retail food refrigeration, laboratory equipment, and residential and light commercial HVAC systems.
The EPA encourages stakeholders in these sectors to review the proposal and provide comments, as industry input will play a crucial role in shaping the final regulations.
Comments must be received on or before November 17, 2025. Public hearing: If a public hearing is requested on or before October 8, 2025, the EPA will hold a virtual public hearing on October 20, 2025.
Further information on how to request a public hearing, where to send comments, and the potentially affected categories by NAICS code can be found in the Federal Register.
Reference:
5) CBP Launches CTPAT Pilot Program for Third-Party Logistics Providers
U.S. Customs and Border Protection (CBP) has announced the launch of a new pilot program allowing Third-Party Logistics Providers (3PLs) to participate in the Customs Trade Partnership Against Terrorism (CTPAT) initiative. The program, authorized by the Customs Trade Partnership Against Terrorism Pilot Program Act of 2023, marks the first time 3PLs will have the opportunity to join CTPAT.
The pilot will include a total of 20 participants, split evenly between 10 asset-based and 10 non-asset-based 3PLs, with selection on a first-come, first-served basis. Approved applicants must submit both a company profile and a security profile. If accepted, each participant will be assigned a Supply Chain Security Specialist to verify compliance with CTPAT requirements.
Participants in the pilot program will receive the same certification, responsibilities, and benefits as current CTPAT members, expanding security partnership opportunities within the logistics sector.
Reference:
6) National Marine Fisheries Service Announces Renewal of Certification of Admissibility Form for Imports
The National Marine Fisheries Service (NMFS) has announced the approval and renewal of the Certification of Admissibility (COA) form, following authorization from the Office of Management and Budget (OMB). The updated COA form is valid through July 31, 2028, and is now available for download on the NMFS website - Certification of Admissibility for fishery products.
Beginning November 3, 2025, all imports subject to COA requirements must be accompanied by the new form to ensure compliance. NMFS has emphasized that entries from Mexico utilizing designated HTS codes will be deemed inadmissible if not accompanied by the appropriate Certification of Admissibility.
Industry stakeholders are encouraged to review the updated form and ensure their import procedures are aligned with these new requirements to avoid disruptions in trade. For further details and access to the form, visit the NMFS website: https://www.fisheries.noaa.gov/s3/2025-07/AdmissibilityFormOMBApprovedTo31July2028.pdf
References:
- CSMS # 66356133 - National Marine Fisheries Service (NMFS) Publishes Updated Certification of Admissibility Form
- CSMS # 66355809 - NMFS Certification of Admissibility Update: Newly Designated Officials for the Government of Mexico
Get expert advice on customs and foreign trade, direct from our comprehensive customs brokerage and trade services teams.