Ivalua: US Timber Tariffs to Hit Construction Supply Chains

Tariffs introduced by the US on a range of imported goods, including kitchen cabinets, vanities and timber, have prompted calls for businesses to prepare for sustained disruption.

The measures include a 10% tax on softwood lumber and timber imports and a 25% tariff on imported kitchen cabinets and vanities, which is set to rise to 50% from 1 January 2026.

Upholstered wooden furniture imports will also face a 25% tax, increasing to 30% in 2026 unless new trade agreements are secured.

While the US administration under President Donald Trump presents these tariffs as a way to protect American manufacturers and address national security, the move raises concerns about the potential impact on housing costs and home renovation projects.

Housing market headwinds

The tariffs have been met with apprehension in the housing sector.

When they were first announced in September, Buddy Hughes, Chairman of the National Association of Homebuilders (NAHB), voiced his concerns: "These new tariffs will create additional headwinds for an already-challenged housing market by further raising construction and renovation costs."

The NAHB expands on this position, arguing that increasing the cost of housing is not the correct approach.

The association states: "NAHB believes that imposing new lumber tariffs that make housing more expensive is not the answer.

"We are urging the administration to continue its efforts to increase the supply of timber from public lands in an environmentally-responsible manner and to quickly enter into negotiations with Canada and other global trading partners to resolve ongoing trade issues in a fair and equitable manner that eliminates tariffs on lumber and other building materials."

Navigating global tariffs

These measures form part of a broader strategy by President Trump's administration, which previously applied targeted tariffs to sectors such as aluminium copper, automobiles, auto parts and steel.

With a new global 10% levy on softwood lumber now added to existing duties, lumber from Canada, which is the world's second-largest producer and a key supplier to the US, now faces total tariffs of over 45%.

Under current trade agreements, tariffs on wood products from the UK are capped at 10% while imports from the European Union and Japan are subject to maximum duties of 15%.

The White House maintains that the tariffs are intended to shield against "threats" to US national security and to "strengthen manufacturing".

Procurement strategies for permanent disruption

The impact of these tariffs extends to UK businesses, according to a survey of 300 procurement and supply chain experts conducted by Ivalua.

The findings indicate that US tariffs have had a major effect on supply chain confidence and are expected to cause further disruption.

According to the Ivalua survey:

• 75% of respondents say US tariffs have negatively affected confidence in their supply chains.
• 80% expect their supply chains to be disrupted by increases in US tariffs.
• 43% believe supply costs could increase sharply, reducing profitability.
• 42% say they will likely pass these increased costs on to their customers.

Alex Saric, Smart Procurement Expert at Ivalua, notes the immediate challenges facing businesses.

He explains: "As imported lumber, timber and wooden furniture are the latest products hit by a torrent of US tariffs, UK businesses can forget about long-range supply chain forecasts. Instead, companies now find themselves reacting to economic aftershocks within a single day, undertaking supply chain fire drills to mitigate the impact of changing tariffs.

"To stay afloat, British businesses must become agile enough to turn on a dime and make informed decisions in an instant. This means identifying which suppliers and products will be affected by sudden changes and finding alternative suppliers or routes when needed.

"With more trade flashpoints looming, resilience won't come from simply reacting faster but from planning as if disruption is permanent."