Tariff Talk

New tariffs went into effect today, October 14, at 12:01 AM, introducing additional commodities to Section 232 duties. Softwood timber and lumber will be assessed a 10% global rate; all affected items are classified under Chapter 44. A 25% rate is now imposed on upholstered wooden furniture, completed kitchen cabinets, vanities, and their parts for all countries except the UK, the EU, and Japan. Country-specific rates are in place for the three exempted countries, equal to their negotiated reciprocal rates. Pharmaceuticals were not included in today’s update.

As reciprocals are excluded when remitting Section 232s, the UK (10%), EU (15%), and Japan (15%) remain capped at their respective country rates. The pleasant surprise for importers is that the IEEPA country-specific tariffs are also excluded along with the reciprocals. The IEEPAs excluded when remitting these 232s include fentanyl-related tariffs on Mexico and Canada, as well as geopolitical tariffs imposed on Brazil and India. Not exempted, however, is China.

An exclusion is also in place for incomplete cabinets and vanities. This exclusion is expected to face scrutiny, and importers are urged to have documentation readily available to demonstrate the condition of these goods during customs inspections.

These new 232s are eligible for drawback—a sharp contrast to previous 232s issued on metal and metal derivative products. It is important to note that 158 tariff numbers currently under exclusion (Annex II) from reciprocals have been removed. Those HTS numbers now have either the 232 applied or their per-country reciprocal rate.

China, meanwhile, is the nation currently under threat of new tariffs. In response to China’s export restrictions on rare earth minerals—critical for high-tech manufacturing—President Trump announced an intent to add an additional 100% tariff on Chinese-origin goods. Twenty-four hours later, the President released an update on Truth Social: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want a depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!” This message was viewed as an attempt to calm importer concerns.