According to information from the Ministry of Industry and Trade, on December 31, 2025, President Donald Trump signed a Declaration adjusting the import tax policy on wood, sawn wood and wood derivatives into the United States under Section 232 of the 1962 Trade Expansion Act.
Accordingly, the United States decided to postpone the tax increase on some finished wood products, including mattress seats, kitchen cabinets and bathroom cabinets, from January 1, 2026 to January 1, 2027.
According to Declaration 10976 issued in September 2025, wood products are currently subject to a tax rate of 10% on raw wood and 25% on deep processed goods; and are expected to increase sharply from the beginning of 2026 to 30% and 50%. The postponement of the application of higher tax rates means that current tax rates will continue to be maintained.
The United States said this decision is aimed at creating room for ongoing trade negotiations, while serving the goal of ensuring economic security and supply chain stability. Notably, the adjusted tax rate in the future will directly depend on the outcome of negotiations, showing that tariffs continue to be used as a strategic negotiating tool, rather than just a pure protectionist measure.
In essence, it is necessary to clearly affirm that this is not a postponement of tax imposition, but only a postponement of tax increases. Wood products imported into the United States are still subject to tax according to Section 232 at levels of 10% and 25%. Despite facing many difficulties, Vietnamese wooden furniture exports to the United States still maintained a positive growth momentum in 2025. Therefore, this decision is of practical significance. Avoiding the tax shock right from the beginning of the year helps businesses maintain orders, stabilize selling prices and have more time to adjust market strategies.
In particular, it is necessary to clarify that the decision to postpone the tax increase under Section 232 is completely unrelated to the final rulings of the US Supreme Court on the Counterpart Tax Decree. The reason is that the tax under Section 232 is issued on the basis of national security and under executive jurisdiction, separate in legality and operating mechanism from counterpart tax measures under the International Early Economic Enforcement Act (IEEPA). Therefore, regardless of any judicial adjustment related to counterpart tax, the timber tax rates under Section 232 continue to be independently effective.
In the medium term, the picture remains potentially risky. The United States is expanding its investigation and applying Section 232 to many other import groups, and does not rule out the possibility that tariffs will continue to be adjusted to serve the goal of negotiating or exerting internal economic and political pressure in 2026. For Vietnam's timber industry, 2026 will need to be seen as a "temporary but unsafe" period, requiring close policy monitoring, proactive dialogue with the United States, and preparation of long-term response scenarios.
According to US data for the first 9 months of 2025, Vietnam's furniture export turnover reached about 10 billion USD, an increase of 10% compared to the same period in 2024 and accounting for about 21% of US total imports for this commodity group.
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