Trade in wood and wood products between Vietnam and the United States

On the morning of June 24, the Department of Forestry – Forest Protection (Ministry of Agriculture and Environment), the Vietnam Timber and Forest Products Association and Forest Trends held a Seminar: “Trade in wood and wood products between Vietnam and the United States”

The United States is the most important market for Vietnamese wood.

The United States is the most important export market for Vietnam’s wood industry. In 2024, the industry’s export turnover from this market will reach about 9 billion USD, accounting for over 50% of the total export turnover of the whole industry. This is also one of Vietnam’s important markets for supplying raw wood materials.

Accordingly, in 2024, Vietnam will import over 303,000 m3 of round wood and 429,000 m3 of sawn timber from the United States with a turnover value of over 300 million USD. The scale of the market, both in terms of Vietnam’s export of wood products to the United States and its import of wood materials from this market, is likely to expand.

However, trade in wood products between the two countries is potentially unstable as the US Government is considering applying a 46% reciprocal tax rate to imported goods into the United States, including wood products.

At the same time, most of the high-value wood products that Vietnam is currently exporting to this market are being investigated by the US Government under Article 232 of the US Government’s Trade Expansion Act.

Most recently, on May 22, the US Coalition for Fair Trade in Hardwood Plywood filed a lawsuit against Vietnamese, Chinese and Indonesian manufacturers, alleging that Vietnamese plywood products received subsidies from the Vietnamese government before being exported to the United States and were sold at prices below cost, which harmed US manufacturers. All of these factors are currently having a significant impact on the psychology and production and business activities of manufacturers in the industry.

The Vietnamese government is making efforts to negotiate with the US government on tax rates for imported goods into this market. Associations and businesses in the industry have also made similar moves. The efforts of the Vietnamese government and the wood industry business community are one of the important measures to promote sustainable trade, bringing benefits to both countries.

Timber businesses may face double tariffs from the US by the end of 2025

At the Seminar, leaders of the Department of Forestry – Forest Protection updated the results of the working trip to the United States by the Ministry of Agriculture and Environment, Vietnam Timber and Forest Products Associations; leaders of the International Furniture Association of the United States shared updated information and recommendations for Vietnamese enterprises on Countervailing Taxes; National Security Investigation under Section 232 on imports of logs, sawn timber and derivative products, Anti-dumping and anti-subsidy investigation on Vietnamese timber and wood products; leaders of the Vietnam Timber and Forest Products Association updated information on Vietnam – US timber trade in the face of countervailing tax challenges, trade defense barriers and requirements to ensure sustainability; The research team of Timber Associations and Forest Trends shared updated information on Vietnam – US timber and wood products trade: Identifying some risks in the supply chain from China; The role of international cooperation in reducing trade risks for exporting enterprises and sustainable development of the industry.

Ms. Ashley Amidon, Executive Director of the International Wood Products Association (IWPA) shared at the Seminar

Ms. Ashley Amidon, Executive Director of the International Wood Products Association (IWPA), said that there are three main groups of measures that can be applied: reciprocal tariffs, national security investigations under Section 232, and anti-dumping and countervailing duties (AD/CVD) on plywood.

Regarding reciprocal tariffs, on April 2, the US government announced a general tariff of 10% across the board, along with additional tariffs for each country. For Vietnam, the additional tariff announced is 46%, but is being postponed until July 9.

The basis for imposing tariffs is the International Emergency Economic Powers Act (IEEPA), but this measure is currently suspended under a ruling by the US Court of International Trade. The case is being appealed to the Federal Court of Appeals and may continue to be brought to the Supreme Court if necessary.

IWPA said that the items under investigation under Section 232 are not affected by the above additional tax policy. Under the Trade Expansion Act of 1962, Section 232 allows the US President to impose quotas or import duties if goods are determined to affect national security.

On March 10, the US initiated an investigation into wood and lumber products under Section 232. The investigation period according to regulations can last up to 390 days. However, IWPA said that this process can be shortened and will likely move to the conclusion phase in the near future. The scope of the tax can be adjusted depending on the results of the investigation.

In addition to the above two measures, on May 22, the US Coalition for Fair Trade in the hardwood plywood industry filed a petition requesting the application of anti-dumping and countervailing duties on manufacturers from China, Indonesia and Vietnam.

According to the petition, the companies are accused of receiving unfair subsidies and selling products below market value, causing harm to the domestic manufacturing industry. The proposed punitive tariffs are: China 474.2%; Indonesia 202.8%; and Vietnam up to 133.72%. The preliminary tariffs could be applied from the fourth quarter of 2025 if the investigation progresses as scheduled.

IWPA reminds Vietnamese companies to closely monitor the Separate Application for Rates (SRA) issued by the US Department of Commerce, expected in late July or early August. Timely responses could affect the final tariff rates applied.

In addition to IEEPA, IWPA also raised the possibility that the US government could invoke Section 122 if the Court does not approve the application of IEEPA. Section 122 allows the President to impose tariffs of up to 15% for 150 days and can only be extended with congressional approval.

Delegates attending the Live Discussion

The factor that US authorities are interested in is the origin of the wood

Answering questions from Vietnamese wood associations and enterprises at the Vietnam – US Wood Trade Forum, Ms. Ashley emphasized that the first factor that US authorities are interested in is the origin of the wood, whether it comes from outside the US territory or not. Whether the wood is certified or not is only a secondary factor, while transparency about the source of raw materials is considered mandatory.

According to her, US consumers do not place much importance on whether the product is made from wood originating in the US or another country, but are mainly interested in the factor of competitive prices.

Regarding the investigation under Section 232, one of the import control tools to protect national security, Ms. Ashley said that the list of items under consideration is quite broad, including wooden cabinets and furniture. However, the final decision on applying defense measures has not yet been made.

She said that current tariffs are affecting global businesses, not just Vietnam. In this context, she called on businesses to increase cooperation and share information with each other to strengthen understanding and proactively respond to risks. “The 46% reciprocal tax rate that the US is considering for Vietnam is very high,” she said.

Sharing the same view, Mr. Joe O’Donnell, Director of Government and Public Relations of the International Wood Products Association (IWPA), commented that if Vietnamese businesses can import hardwood from the US, this will be an advantage in the origin dossier. He also emphasized that Vietnamese businesses need to proactively provide information to US consumers to increase trust and protect market share.

IWPA affirmed that it will continue to monitor policy developments and support relevant parties, including Vietnamese businesses, in adapting to trade requirements from the US.

Directly accompanying the working delegation of Minister Do Duc Duy to the United States in early June 2025, Mr. Phung Quoc Man, Chairman of the Handicraft and Wood Processing Association of Ho Chi Minh City, highly appreciated the role of IWPA in promoting cooperation between Vietnam and the United States to develop a transparent and sustainable wood supply chain.

He also said that proactively participating in training programs and seminars organized by IWPA will help Vietnamese enterprises access international standards more quickly. This is the foundation for Vietnam to increase exports of high-value processed wood products, while minimizing risks from trade investigations or tariffs.

Main source : https://goviet.org.vn/bai-viet/thuong-mai-go-va-san-pham-go-giua-viet-nam-va-hoa-ky-10289