India set to gain from US tariffs on timber, lumber, kitchen cabinets

The United States (US) administration’s decision to impose new tariffs on items such as imported timber and lumber, kitchen cabinets, bathroom vanities and upholstered furniture may help Indian exporters become more competitive in the American market.

 

Once implemented, the new tariffs, ranging from 10 per cent to 25 per cent, will replace the current 50 per cent duties that India is facing.

 

The tariff on lumber and furniture duties will kick in from October 14.

 

According to a White House factsheet on 29 September, the US’s reliance on imported lumber is exacerbated by foreign government subsidies and predatory trade practices, which undermine the competitiveness of the US wood products industry.

 

“By imposing tariffs on wood products, President Trump is countering foreign subsidies and predatory practices that distort markets, making imported lumber less competitive and incentivising the growth of domestic wood production to achieve self-sufficiency and mitigate supply chain risks to national security,” the factsheet said.

 

“The proclamation follows the secretary of commerce’s completion of a Section 232 investigation under the Act, which found that the present quantities and circumstances of the imports of wood products threaten to impair national security,” it said.

 

In the case of the United Kingdom (UK), the tariff will be capped at 10 per cent. The European Union and Japan will face a combined rate not exceeding 15 per cent. These rates are in line with the base tariff rate in those framework agreements with the US.

 

Ajay Srivastava, former trade official and founder of Delhi-based think tank Global Trade Research Initiative (GTRI) said that for India, the change is a major relief.

 

“Its exports of affected products totalled $654.8 million in FY25, including $568.3 million in kitchen cabinets, $83.3 million in upholstered furniture, and $3.2 million in softwood lumber,” Srivastava said, adding that lower tariffs may make India a cost-effective alternative for US buyers in furniture and cabinetry, potentially boosting Indian exports in FY26.

 

The action heaps more tariffs on Canada, the biggest softwood lumber supplier to the US, where producers already face combined US anti-dumping and anti-subsidy tariffs of about 35 per cent due to a long-festering dispute over timber harvested from Canadian public lands.

 

Mexico and Vietnam are growing suppliers of wooden furniture to the US after Trump hit Chinese furniture products with tariffs of up to 25 per cent during his first term starting in 2018, duties which have since been raised to about 55 per cent and now could nearly double for cabinets and vanities.

 

(With inputs from Reuters)