On July 20, 2026, President Trump announced new action under Section 338 of the Tariff Act aimed at imports from Canada. The mechanism is a broad additional 50% ad valorem duty on a long list of Canadian-origin goods, identified in Annex II of the proclamations, effective August 19, 2026, layered on top of whatever duties already apply. Hundreds of HTS codes across dozens of chapters were pulled into these tariffs.
KCMA thanks our colleagues at the Decorative Hardwoods Association (DHA) for the underlying summary and trade data on which this article is based.
Direct impact on hardwood plywood
According to DHA's analysis, HTS heading 4412 (plywood, veneered panels, laminated wood) is covered almost in its entirety — nearly every 4412 subheading (the 10, 31, 33, 34, 39, 41, 42, 49, 51, 52, 91, 92, and 99 series) appears on the Annex II list. If this proclamation takes effect as written, Canadian-origin hardwood plywood would face an additional 50% duty on top of any existing tariffs starting August 19. Also included on the list is 4408.10.01, which covers coniferous (softwood) veneer. Thus, any companies importing softwood veneer for core stock would also be impacted.
Hardwood veneers are not covered by the 50% duty
Hardwood veneers are not on this list. The proclamation explicitly states these new duties don't apply to articles already subject to Section 232 duties. CBP is directed to issue implementing guidance before the August 19 effective date, which should resolve this.
U.S. Consumption Imports of Hardwood Plywood Goods (excluding flooring)
The DHA summary included the following figures, drawn from Census data through the April 2026 final release.
| Source Country | 2023 | 2024 | 2025 |
|---|---|---|---|
| Grand Total | $1,054,181,745 | $1,197,920,591 | $1,406,140,438 |
| Indonesia | $281,027,244 | $324,732,580 | $423,814,011 |
| Vietnam | $172,495,045 | $232,344,641 | $300,303,034 |
| Canada | $208,169,460 | $220,353,912 | $197,182,566 |
Source: Decorative Hardwoods Association, from U.S. Census data (final release through April 2026).
Canadian-origin hardwood plywood represented roughly $197 million in customs value in 2025 — a meaningful share of the U.S. market and the volume most directly exposed to the new 50% duty. Members who source Canadian panel product or softwood veneer core stock should review their supply chains ahead of the August 19 effective date and watch for CBP’s implementing guidance.
This article is provided for informational purposes only and does not constitute legal or trade-compliance advice. Tariff classifications and coverage are determined at the specific HTS subheading level; members should confirm their exposure with a licensed customs broker or trade counsel. KCMA gratefully acknowledges the Decorative Hardwoods Association for the source summary and data.
