Chinese Plywood Hit with 187% Tariff
The U.S. has imposed a 187% duty on the last remaining imports of Chinese plywood, effectively shutting off this supply line. This move will likely push prices up for plywood and may affect project costs for DIYers and professional woodworkers alike.
This trade dispute has been escalating for years. The U.S. International Trade Commission (USITC) first determined that the domestic plywood industry was materially injured by subsidized and unfairly priced Chinese imports back in 2017. This led to the initial imposition of antidumping and countervailing duties in early 2018. The latest 187% tariff is a direct response to what the U.S. Department of Commerce has identified as a concerted effort by Chinese producers to circumvent existing duties. An investigation found that Chinese-made plywood components were being shipped to Vietnam, assembled into finished products, and then exported to the U.S. to avoid the initial tariffs. This practice of transshipping has been a major concern for the U.S. hardwood industry. The surge in imports from Vietnam and Indonesia, coinciding with a dramatic drop in direct shipments from China, illustrates the scale of this circumvention. From 2016 to 2025, U.S. imports of hardwood plywood from China plummeted by approximately 38 times, from 2 million cubic meters to just 52,800. In 2024 alone, the U.S. imported 828,767 cubic meters of hardwood and decorative plywood from Vietnam and 787,821 from Indonesia, compared to 154,516 from China. The lead petitioner in this case is the Coalition for Fair Trade in Hardwood Plywood, which represents major American producers including Columbia Forest Products and Timber Products Company. They argue that these unfair trade practices have harmed the domestic industry for decades by suppressing production, shipments, profits, and employment. The new duties are not limited to just the 187.27% antidumping rate. The Commerce Department has also imposed preliminary countervailing duties to offset Chinese government subsidies. Furthermore, they have made a finding of "critical circumstances," which allows for the retroactive collection of duties on imports that arrived up to 90 days before the official ruling. The impact of these tariffs is expected to extend beyond import statistics. The National Association of Home Builders has previously warned that tariffs on lumber and other wood products could add thousands of dollars to the cost of a new home. The furniture manufacturing industry, which relies on imported plywood, may also face increased material costs. This action is part of a broader series of trade investigations into hardwood and decorative plywood from Southeast Asia. The U.S. Department of Commerce is also investigating alleged dumping and subsidies from Indonesia and Vietnam, with preliminary duties already in place for those countries as well. Looking ahead, the U.S. plywood market is expected to remain volatile. While the tariffs aim to level the playing field for domestic producers, importers and downstream industries will likely face continued price uncertainty and supply chain adjustments. Analysts predict that plywood prices will remain elevated as the market adapts to these new trade dynamics.
