NLBMDA Member Alert:

White House Announces New Round of Tariffs, Lumber Exempted in a Victory for NLBMDA

At a Rose Garden event yesterday at the White House, President Trump invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to issue a new sweeping round of tariffs against its global trading partners through the use of reciprocal tariffs. The White House established a new 10% baseline tariff against nearly all nations with additional tariffs levied on a country-by-country basis. The White House stated it would adopt a “half-reciprocal” approach, meaning the U.S. would calculate the tariff rate levied against the U.S. and respond with tariffs 50% less than. 

Goods originating from China, which have been subject to a 20% tariff, will see a new 34% increase that will be layered onto the previously announced tariffs making the combined rate 54%. 

A chart of the new reciprocal tariffs levied against the United State’s major trading partners is included below. All affected countries are listed here.

In a victory for NLBMDA’s advocacy efforts, notably absent from the new round of tariffs were additional levies on Canadian and Mexican imports. The White House stated that it would continue its previously announced policy of allowing USMCA-compliant goods to enter the United States without being subject to additional tariffs. Canada and Mexico are still subject to a 25% tariff on steel, aluminum, automobiles, and goods not compliant under USMCA. 

Canadian softwood lumber and its derivative products wholly manufactured in North America will not be subject to increased tariffs following yesterday’s announcement. Over the last few months, through letters sent to the White House and Office of the U.S. Trade Representative (USTR), NLBMDA called for Canadian-softwood lumber to be exempted from additional rounds of tariffs. NLBMDA also submitted formal comments to the Commerce Department responding to a Section 232 Investigation initiated by the Department to determine the national security effects of the import of wood products. NLBMDA’s comment letter underscored the impact increased tariffs would have on housing affordability and consumers if additional measures were implemented. 

Hours after the announcement, the Senate voted 51-48 in support of a S.J. Res. 37, a resolution that would terminate the national emergency declared by the White House to impose duties on articles imported from Canada. The resolution was not a disapproval of yesterday’s tariff announcement but rather of the February 1st Executive Order the President issued to use as justification for tariffs on Canada. Republican Sens. Lisa Murkowski (AK), Susan Collins (ME), Rand Paul (KY) and Mitch McConnel (KY) voted with all Democrats in support of the resolution.  

For questions, please contact NLBMDA Government Affairs Coordinator, Matthew Delaney, mdelaney@dealer.org