President Trump Announces New Global Tariffs After IEEPA Ruling; Lumber Exempt

On Friday, President Donald Trump announced a 10% temporary import duty under Section 122 of the Trade Act of 1974.

Earlier Friday, the US Supreme Court struck down his tariffs imposed under the International Emergency Economic Powers Act (IEEPA). In a 6–3 decision, the Court held that IEEPA does not authorize the president to impose tariffs. In response, Trump said he would pursue “other alternatives” and moved to implement the temporary 10% duty under Section 122.

In a social media post on Saturday, Trump said the 10% Section 122 rate would be increased to 15%—the maximum allowed by the statute—but a corresponding order had not been released by the White House as of late Sunday.

The Section 122 surcharge is scheduled to take effect February 24 and remain in place for up to 150 days.

Impacts on Wood Products

The proclamation states that the 10% duty does not apply “in addition to tariffs imposed under Section 232,” nor to goods covered by USMCA.

Imported lumber is already subject to Section 232 measures, meaning the new tariff does not apply (from Canada or offshore).

However, other wood products—such as plywood, OSB, engineered lumber, and mass timber—are not subject to Section 232 measures. In short, goods not covered by USMCA (offshore) will face the Section 122 duty, while products from Canada will not.

To discuss further, please contact Paul Jannke at pjannke@getfea.com.