The U.S. stock market had its worst week since 2020 after President Donald Trump announced a 10% tariff on all imports and even higher “reciprocal tariffs” on dozens of trading partners.
All three major stock indexes in the U.S. have plunged since the tariffs were announced. On Monday, the Dow Jones Industrial Average dropped 800 points, or 2%, the Nasdaq fell 1.3% and the S&P 500 declined 1.7%.
Trillions of dollars have been wiped out in global stock markets since the tariffs were announced last week.
Under Trump's tariff plan, China will get a 34% tariff rate, the European Union 20%, Vietnam 46%, Japan 24% and India 26%. A full list can be seen here.
The “reciprocal” tariffs are based on trading practices that Trump said are unfair to the U.S.
The baseline 10% tariffs went into effect April 5, while the reciprocal rates will go into effect April 9.
Federal Reserve Chair Jerome Powell said April 4 that the U.S. economy is likely to face a period of higher prices and weaker growth because of the tariff hikes.
The tariffs have fueled concern about the likelihood of a recession from major investment banks. Goldman Sachs said the probability of a recession had risen to 45% and JP Morgan last week said the risk of a recession has risen to 60%.
Goods from Mexico and Canada are not subject to the reciprocal tariffs because Trump's prior 25% tariffs remain in place, along with 10% for Canadian energy and potash.
The National Association of Home Builders called the tariff exceptions for Canada and Mexico “a major win,” as Canada accounts for roughly 85% of all U.S. softwood lumber imports.
“While the complexity of these reciprocal tariffs makes it hard to estimate the overall impact on housing, they will undoubtedly raise some construction costs,” NAHB Chairman Buddy Hughes said in a statement. “However, NAHB is pleased President Trump recognized the importance of critical construction inputs for housing and chose to continue current exemptions for Canadian and Mexican products, with a specific exemption for lumber from any new tariffs at this time.”
The Hardwood Federation encouraged its members to contact their federal representatives about how the tariffs have impacted their businesses and operations. The Federation created a draft email and phone script for contacting senators and representatives here. They mentioned that adding your personal thoughts and experience makes the message more impactful.
The Federation will host its annual Fly-In May 13–15 in Washington, D.C., to allow its members to meet with members of Congress and political action committees to advocate for the hardwood industry. Register online here.
