Indian wood and furniture exporters to gain competitive edge in US after Trump's 10% global tariff: GTRI

New Delhi [India], October 1 : Indian wood products and furniture exporters will become far more competitive in the US market, as tariffs on this category will be slashed from 50 per cent to 10-25 per cent after the latest tariff imposed by US President Donald Trump on wood products, said policy think tank GTRI.

"For India, the change is a major relief," Ajay Srivastva of GTRI said in a note, adding that lower tariffs may make India a cost-effective alternative for US buyers in furniture and cabinetry, potentially boosting Indian exports in FY2026.

President Trump, on September 29, 2025, issued a Section 232 Proclamation imposing new tariffs on softwood lumber (HS 4407), upholstered furniture (HS 9401), and kitchen cabinets and vanities (HS 9403).

Section 232 tariffs prevail over country-specific tariffs. For example, when tariffs on India were 25 per cent prior to the penalty of 25 per cent tariff due to buying of Russian oil, India and others were still paying a 50 per cent tariff on the export of Steel to the US.

The new tariffs on wood products and furniture range from 10 per cent to 25 per cent, replacing the current 50 per cent duties India faces.

The UK will be capped at 10 per cent, while the EU and Japan will face a combined rate not exceeding 15 per cent, reflecting their trade deals

GTRI added that the reduction will significantly give respite as India's exports of affected products totalled USD 654.8 million in FY2025, including USD 568.3 million in kitchen cabinets, USD 83.3 million in upholstered furniture, and USD 3.2 million in softwood lumber.

India's softwood lumber exports worth USD 3.2 million will now face a reduced tariff of 10 per cent, down from 50 per cent. Upholstered furniture, with exports of USD 83.3 million, and kitchen cabinets and vanities, the largest segment at USD 568.3 million, will both see tariffs lowered from 50 per cent to 25 per cent, enhancing India's competitiveness in the US market.

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