Specifically, on December 31, 2025, U.S. President Donald Trump signed a statement adjusting the import tariff policy on timber, lumber, and wood-derived products entering the United States under Section 232 of the Trade Expansion Act of 1962.
Under the adjustment, the U.S. has decided to postpone the tariff increase on certain finished wood products, including upholstered chairs, kitchen cabinets, and bathroom cabinets, shifting the effective date from January 1, 2026, to January 1, 2027.
Under Directive 10976, issued in September 2025, timber products are currently subject to a 10 percent tariff on raw wood and a 25 percent tariff on processed wood products. These rates were initially scheduled to rise sharply to 30 percent and 50 percent, respectively, at the beginning of 2026.
The postponement of the higher tariffs means that the current rates will remain in effect for the time being. The United States stated that the decision is intended to provide flexibility for ongoing trade negotiations while also supporting the objectives of economic security and supply chain stability.
According to the Ministry of Industry and Trade, future tariff adjustments will be directly tied to the outcomes of ongoing negotiations, signaling that tariffs continue to be employed as a strategic bargaining tool rather than merely a protective measure.
The Ministry of Industry and Trade emphasized that, in essence, this should not be regarded as a tariff suspension but merely a delay in the planned rate increases. Imported timber products entering the United States will continue to be subject to Section 232 tariffs at rates of 10 percent and 25 percent.
Despite facing numerous challenges, Vietnam’s timber exports to the United States have continued to grow steadily in 2025. As such, the decision carries tangible significance. Avoiding an immediate tariff shock at the start of the year allows Vietnamese businesses to maintain orders, stabilize prices, and gain additional time to adjust their market strategies.
The Ministry of Industry and Trade also emphasized that the decision to delay the Section 232 tariff increases is entirely unrelated to any final rulings by the U.S. Supreme Court on reciprocal tariff orders. This is because Section 232 tariffs are imposed on the basis of national security and fall under executive authority, legally and operationally separate from retaliatory measures under the International Emergency Economic Powers Act. Consequently, any judicial adjustments concerning retaliatory tariffs will not affect the continued enforcement of timber tariffs under Section 232.
In the medium term, risks remain. The United States is expanding its investigation and applying Section 232 to a wider range of imported goods, leaving open the possibility that tariff rates may be further adjusted to support negotiation objectives or to address domestic economic and political pressures in 2026.
The Ministry of Industry and Trade has emphasized to Vietnam’s wood sector that 2026 should be viewed as a period that is “temporarily stable but not yet secure,” requiring close monitoring of policies, proactive dialogue with U.S. counterparts, and the preparation of long-term contingency plans.
