In a major trade policy announcement this week, President Trump invoked the International Emergency Economic Powers Act (IEEPA) to establish a new global tariff structure based on the principle of reciprocity. This sweeping move imposes a 10% baseline tariff on nearly all global trading partners, with additional country-specific tariffs applied at half the rate of those levied on U.S. exports.

Importantly for the lumber and building material industry, softwood lumber and related wood products manufactured in North America have been excluded from this new round of tariffs—a notable victory for the National Lumber and Building Material Dealers Association (NLBMDA), which has consistently advocated for this exemption.

“This is a clear sign that our efforts are making a difference,” said Jonathan Paine, NLBMDA President & CEO. “By focusing on housing affordability and consumer impact, we helped shape a policy outcome that keeps vital materials accessible.”

In addition to ongoing correspondence with the White House and U.S. Trade Representative Jamieson Greer, NLBMDA submitted formal comments to the Commerce Department during its recent Section 232 Investigation. These comments emphasized the harm that increased tariffs on Canadian softwood lumber would pose to the U.S. housing market, particularly at a time when affordability remains a national concern.

The new policy keeps the U.S.-Mexico-Canada Agreement (USMCA) intact for compliant goods. While steel, aluminum, and non-compliant products from Canada and Mexico are still subject to a 25% tariff, Canadian softwood lumber is specifically excluded.

Meanwhile, the Senate narrowly passed S.J. Res. 37, a resolution opposing the February 1st Executive Order that originally declared the national emergency used to justify tariffs on Canadian imports. While the resolution does not impact the latest tariff announcement, it signals growing concern in Congress over the use of emergency powers for trade policy.

Below is the updated tariff chart outlining the newly announced U.S. tariffs on major trading partners under the “half-reciprocal” model:

📩 Questions about how this may affect your business? Contact Matthew Delaney, NLBMDA Government Affairs Coordinator, at mdelaney@dealer.org.

Sources:

• NLBMDA Member Alert, April 3, 2025
• White House Rose Garden Press Conference, April 2, 2025
• Section 232 Investigation – U.S. Department of Commerce
• Senate Vote on S.J. Res. 37, April 2, 2025