President Donald Trump on Monday announced a sweeping new round of tariffs aimed at foreign wood, furniture, and even movies produced outside the United States, marking another escalation in his administration’s trade agenda.
Under a proclamation signed at the White House, the U.S. will impose a 10% tariff on imported softwood lumber and timber, critical materials used in construction and homebuilding. A separate 25% tariff on imported kitchen cabinets, vanities, and upholstered wooden furniture will also take effect on October 14.
The administration plans to raise those rates further at the start of the new year: 50% on cabinets and 30% on furniture beginning January 1.
On Truth Social, Trump argued the tariffs are necessary to protect American workers, writing, “North Carolina has completely lost its furniture business to China.”
The announcement follows a string of recent tariff actions by the president, including new levies on prescription drugs, heavy-duty trucks, and some additional furniture categories.
Expert Concerns
Economists and industry groups were quick to sound alarms. Lumber producers, housing advocates, and construction analysts warned that tariffs on imported timber—much of which comes from Canada—could ripple through the housing market.
“Any increase in softwood lumber prices will directly raise the cost of building homes,” said one homebuilders’ trade representative. “That puts additional strain on affordability at a time when supply is already tight.”
Furniture costs have also been climbing. According to CNN, consumer prices for furniture have risen more than 4.5% in the past year, even before this latest tariff package. Analysts cautioned that domestic manufacturers may not have the capacity to keep up with consumer demand if foreign imports become prohibitively expensive.
Tariff on Foreign Films
In a surprise move, Trump also announced a plan to impose a 100% tariff on all movies made outside the United States.
He did not provide details on when or how the measure would take effect but suggested in another Truth Social post that the American film industry has been “stolen” by overseas competition.
The announcement comes just weeks after Marvel Studios revealed it was shifting upcoming productions from Georgia to the United Kingdom. Georgia has long offered some of the strongest film tax incentives in the U.S., but insiders say the U.K. offered lower production costs, partly due to cheaper labor and access to universal health care for cast and crew.
The Bigger Picture
The latest tariffs underscore Trump’s aggressive approach to reshaping U.S. trade policy and attempting to bring back industries he argues have been hollowed out by globalization.
But economists stress that such policies often create unintended consequences, driving up consumer prices and straining industries that rely on global supply chains.
0 Comments