From October 14, wooden furniture exported to the United States will continue to be subject to a new import tariff of up to 25 percent. This has come as a “shock” at a time when enterprises are accelerating production, raising concerns over the feasibility of maintaining Vietnam’s 2025 wood export targets.
In the long term, aside from adapting to frequently changing tariff policies, enterprises in the wood industry are working to improve product quality. Expanding markets and building the Vietnamese wood brand are considered key solutions for the sector’s sustainable development.
On September 29, U.S. President Donald Trump signed a decree imposing a 25 percent tariff on wooden furniture, effective from October 14. The tariff rate may increase to 50 percent for dressing tables and kitchen cabinets, and 30 percent for upholstered products early next year. This move is regarded as a “shock” to Vietnam’s wood industry.
The United States cited Section 232 of the 1974 Trade Act, arguing that wood and furniture imports are “undermining national security”, weakening the domestic timber industry, and threatening supply chains linked to infrastructure and defence. This decision by the U.S. President Donald Trump will impact countries that export significant volumes of wood products to the U.S., including Canada, Mexico, and Vietnam.
For Vietnam, the U.S. remains the largest market for wooden products. In 2024, exports to the U.S. were estimated at around 9 billion USD, accounting for over 50 percent of the industry’s total export turnover.
According to Ngo Si Hoai, Vice Chairman and Secretary General of the Vietnam Timber and Forest Products Association, Vietnam’s wood exports will certainly be affected by the decision announced by President Donald Trump. In the immediate term, Vietnamese wooden furniture will fall into the 25 percent tariff category. If the rate rises to 30–50 percent in early 2026, many enterprises will reconsider their strategies. Adjusting in the short term will be difficult, as the U.S. market accounts for a significant share of Vietnam’s wood exports. As exporters, domestic enterprises have no choice but to comply with the new tariff policy.
In fact, the U.S. President’s decision not only creates disadvantages for exporting countries but also triggers mixed reactions within the United States itself. The higher tariffs are expected to push up construction and production costs domestically, while reducing the international competitiveness of the U.S. paper and pulp industries. Meanwhile, Vietnam has been a stable and reliable supplier of wooden products for many years. Hence, the new tariffs will not only affect Vietnamese manufacturers but also have a direct impact on the entire supply chain and American consumers.
To cope with these challenges, Vietnamese wood enterprises are strengthening supply chain cooperation, expanding e-commerce operations, accessing new markets, and enhancing their competitiveness within global value chains.
Seeking adaptation
According to wood businesses, to respond effectively to such tax policy fluctuations, the Government should provide greater support in terms of market information and intelligence. It is also essential to consider tariff risk assessment as a key tool to help enterprises develop suitable solutions for each supply chain and product category.
Nguyen Phuong, Vice Chairman of the Dong Nai Wood and Handicrafts Association (Dowa), noted that in the final months of 2025, market performance may decline depending on the extent of tariff changes, especially since exports to the U.S. account for more than half of Vietnam’s total wood export value. Therefore, enterprises must closely monitor market developments and trade policies from importing countries to ensure that they have flexible and adaptive strategies.
Another issue for the industry is fostering innovation and breakthrough efforts in building brands in the international market. Despite considerable improvement in recent years, Vietnam’s furniture industry still lacks breakthroughs and remains largely dependent on contract manufacturing for foreign partners. Businesses should vigorously pursue the goal of establishing professional design and marketing teams to trade under their own brands.
Sharing the same view, Nguyen Chanh Phuong, Vice Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), emphasized the importance of production autonomy for businesses. For sustainable development, the sector requires a skilled workforce and a legally certified source of raw materials. At the same time, the Government needs to issue supportive policies for industry development and assist enterprises in addressing issues arising from participation in the global goods market.
Although market fluctuations are unavoidable, they also present opportunities for Vietnam’s wood industry to restructure. In recent years, thanks to its flexible market approach, the sector has experienced strong growth. Its annual export turnover has reached 16–17 billion USD, and further development remains within reach, particularly if brand building continues to be prioritized.