Meeting Congress on Hardwood Trade Issues

The Hardwood Federation Team has held a series of meetings over the last few days with key Congressional offices to raise and discuss trade related issues of importance to the industry.  We had frank discussions with senior staff reporting to House Agriculture Committee Chair GT Thompson. Senate Agriculture Committee Chair John Boozman, and House Ways and Means Committee Chair Jason Smith.  HF Executive Director Dana Lee Cole also had conversations with House Natural Resources Chairman Bruce Westerman (R-AR).  We focused on two key issues during these meetings:

• The potential impacts of an extended global trade war on the U.S. hardwood industry and our proposed financial relief formula should retaliatory tariffs be imposed;
• The ongoing delay in distribution of foreign market development funds to the American Hardwood Export Council.

Regarding the first, offices understand the potential impact of a trade war.  They agreed that proposing solutions now rather than later is a good move.  Although providing relief to the agriculture community is under consideration, just where those funds will come from is unknown.  In 2019, $30 billion in relief to row crop farmers came from the Commodity Credit Corporation (CCC), however the CCC fund now sits at $4 billion and unless it is replenished, other options will have to be identified.  In terms of export promotion funding, our contacts in Thompson and Boozman’s office have been trying to get answers from the U.S. Department of Agriculture...but have also not been able to get much information. Now that Brooke Rollins has been confirmed as Ag Secretary, both offices are hopeful that progress can be made. 

Senator Tom Cotton (R-AR) also called Federation staff into his office to ask about our position on the E.U. Deforestation Regulation.  He and his team are interested in helping and they indicated they are thinking of how to approach the White House about putting pressure on the E.U. during expected trade discussions.  We also took the opportunity to mention the issues above.  We continue to schedule meetings and work with our Board and industry leaders on outreach and communications around these issues.

Administration Slow Walks Reciprocal Tariffs

This afternoon, President Trump announced that the Administration, through the U.S. Trade Representative (USTR), would move forward with reciprocal tariffs on a country-by-country basis, following an evaluation of the extent of trade imbalances between the U.S. and specific trading partners. Today’s action effectively slows down the President’s promise to impose immediate, reciprocal tariffs on nations that impose tariffs on the U.S.  The Federation will deliver updates on this latest action as they unfold. 

Senate, House Race to Move Budget Legislation

A clear path forward for tax legislation has remained elusive in recent weeks as House Republicans have struggled to gain consensus on a basic plan and failed to jump-start a process that must begin in the budget committee.  Known as “budget reconciliation, the procedure would allow a tax package to pass the Senate with a simple majority vote.  This week, however, as Senate Budget Committee Chairman Lindsey Graham (R-SC) has reaffirmed his plan to move two separate bills - the first focusing on border security and energy and a second, later vehicle that would include tax.  Chairman Graham, moving ahead of the House, managed to push his resolution through committee on Wednesday evening, teeing up a vote in the Senate.  Earlier this week, House Speaker Johnson managed to release an outline of his own proposal – a single-package plan which includes tax breaks – and plans to move the proposal through the House Budget Committee today. This could add momentum to the Speaker’s goal of securing tax priorities sooner rather than later. Restoring key business tax benefits that have been allowed to lapse or begin phasing out, including 100 percent bonus depreciation and extending the 20 percent small business deduction, are key objectives for the 119th Congress. The Federation will keep you posted on developments. 

House Acts as Corporate Transparency Act Continues to Move Through Federal Courts

On Monday, House lawmakers passed the Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736), a bill to push back the CTA’s filing deadline for businesses established before 2023 until January 1, 2026. The CTA became effective at the end of 2024 and requires small businesses to report the personal information of their owners and managers to the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department. The bill now heads to the Senate.  Meanwhile, in the federal courts, suspension of the reporting requirements hangs by a thread.  While the Supreme Court ruled in favor of the federal government earlier this year, the ruling was limited to a single case.  A separate ruling from a federal court in favor of the business community, effectively suspending the reporting requirements, still stands but could be contested soon.  The Federation will deliver updates as they unfold.

2025 Policy Survey - Make Your Voice Heard!

As the Hardwood Federation fights for the industry in 2025, we need your feedback to focus on those issues that have the greatest impact on your business. Please complete our three-minute survey by clicking on the link provided below to share your opinion. We have provided summaries of key concerns including carbon sequestration and storage, federal forest management, trade, and tax reform, along with a quick ranking metric for you to review and gauge the importance of each issue. Please submit your completed survey by COB Monday, February 17.  To begin the three-minute survey, please click here.