The U.S. increased tariffs on $200 billion worth of Chinese products, including hardwood flooring, from 10% to 25% on May 10. On May 13, China retaliated with tariffs on $60 billion worth of U.S. goods that will amount to the cost of the U.S.’s 25% tariffs.
China’s tariffs will go into effect June 1, according to NPR. U.S. hardwood flooring products will be included China’s latest tariff increase.
Various wood species imports will be impacted by China's tariff increase, though the latest tariff list from China has yet to be fully translated into English. If the list reflects China's postponed tariff list, imports of oak from the U.S. would receive 25% tariffs, cherry and ash would receive 20% tariffs and walnut, hard maple, tulipwood and alder would receive 5% tariffs, according to the Hardwood Federation.
The U.S.'s increase to 25% tariffs on Chinese goods has been looming since the Trump administration levied 10% tariffs on Chinese goods in September 2018, and had been delayed by President Trump due to purported progress in the trade negotiations. Trump surprised many officials by tweeting May 5 that the tariffs would increase on May 10.
Since imposing the U.S. tariff increase, Trump has published a series of tweets critical of China’s trade practices. China, which had long indicated it would retaliate should the U.S. impose the 25% tariffs, sent officials to Washington D.C. last week to continue trade negotiations. U.S. officials stated the negotiations with China last week were constructive.
U.S. importers of Chinese hardwood flooring have noted that such a tariff increase could have monumental impacts on the industry, increasing costs and causing the market to shift to other countries.
Chinese stock markets fell 1% May 13 following the tariff increase, according to Reuters.
This story was updated at 12:22 p.m. to include a breakdown of tariffs by wood species.
