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From the Executive Director: HF Boards Map Out 2025 Agenda
The Hardwood Federation and Hardwood Federation PAC Boards of Directors met in Indianapolis on Monday, March 17th for their annual winter meeting. This meeting helps the Hardwood Federation staff focus advocacy efforts for the coming year as well as get any necessary direction on the management and administration of the Association.
The winter meeting also marks the arrival of new members of both Boards as well as the departure of valued participants. This year we also welcomed Jon Syre, Chairman and CEO of Cascade Lumber as the Chair of the Federation Board who began his 2-year term at the beginning of the session. Troy Brown President of Kretz Lumber did a great job during his very challenging two years as Chair. Although he steps down as the head of the Board, he will remain active as Past Chair until 2027 and we are grateful for his continued leadership role. Similarly committed to Hardwood Federation leadership, Jesse Joyce, President of Middle Tennessee Lumber returns as Chair of the HF PAC Committee with Peter Connor President of WD Flooring as Vice-Chair.
The Board also recognized two individuals stepping down from Board service after many years of participation. John Smith, CEO of PLM and Lowery Anderson, Owner of Roy Anderson Lumber have both been outstanding members and their contributions will be missed. Filling these seats are Sean Brisco, Vice President of Loss Control at PLM and William Perry, Lumber Purchaser of Powell Valley Millwork. Chris Herrell, Executive Vice President of Pike Lumber Company and Jim Hourdequin, CEO of the Lyme Timber Company both take a newly created seats, one due to an increase in dues from the Indiana Hardwood Lumbermen’s Association and the other a new Corporate Board Seat.
The Hardwood Federation cannot express our appreciation for those that agree to serve on our Boards of Directors. Their time and dedication provide invaluable insight and guidance for Federation staff. You can view full lists of the HF Board and the HF PAC Board on our website.
The Federation Board also confirmed that our policy priorities for 2025. Not surprisingly, the impacts of the Trump Administration’s trade policy and efforts to reauthorize tax policies benefitting small and medium sized businesses are top of mind. Advocating to finally pass a 5-year Farm Bill with strong forestry provisions will also be an important focus.
In terms of Hardwood Federation Administration, a task force will be formed to consider the challenges of funding an organization in the current economic environment; a challenge faced by our member associations and their members as well. The Federation will also look to explore how to best fill our recent staff vacancy and determine what skills and knowledge base will best meet the needs of the industry.
The HF PAC Committee will be meeting in the near future to identify and review key targets for financial support. As always, we will be focusing on members of key committees of jurisdiction: Agriculture, Natural Resources, Finance, Ways and Means, and Energy. However, the PAC Committee will also be working hard to raise the much-needed funds we need to successfully play in this field.
Fly-In Deadlines Approaches: The Hardwood Federation Fly-In is rapidly approaching! We will May 13-15 in Washington, D.C. If you have not already signed up, now is the time! In terms of political energy and activity, there was never a better year to be in D.C! You can register for the Fly-In, make hotel reservations, and review the action-packed agenda here. Our special room rate at the host hotel expires on April 20, so be sure to sign up today!!
Key Hardwood Federation Meetings: The Federation team met with officials from the U.S. Trade Representative, the White House, and several members of Congress to discuss the potential impacts of retaliatory tariffs on the industry should they be implemented and shared our proposed tariff relief proposal. Upcoming meetings are scheduled for the U.S. Department of Agriculture, the U.S. Forest Service, as well as members of the House and Senate Agriculture Committees.
Trade: On March 26 the Trump Administration imposed a 25% tariff on imports of automobiles and automotive parts. Importers of automobiles under the United States-Mexico-Canada Agreement (USMCA) will be given the opportunity to certify their U.S. content and systems will be implemented such that the 25% tariff will only apply to the value of their non-U.S. content. USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.
More tariffs are poised to go into effect this coming Wednesday, April 2, when the long promised retaliatory tariffs will be announced. While initially proposed to be global in nature, it seems the Administration is narrowing their list of targets and tariffs may not be as high as originally proposed. The business community and consumer advocates are all trying to interpret various statements from Administration officials to try and determine the exact details, but nothing will be clear, or final, until the formal announcement is made. Obviously of most interest to the Hardwood industry are tariffs on our major export markets and those that impact countries where we have closely integrated manufacturing relationships like Canada.
Senior level Administration officials have been busy talking to U.S. trading partners in anticipation and as a result of the tariffs being announced. U.S. Trade Representative Jamieson Greer met with his Chinese counterpart this week for a “frank discussion.” U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford also spoke leading to hopes that some agreement can be reached to lessen the impacts of the auto tariffs.
The Budget and Tax Reform: Congress has about three-weeks until the Easter break and are laser focused on forging a compromise budget resolution that will need to pass both chambers in order to kick start the process of developing a budget reconciliation bill that will be the vehicle to reviving and extending the Tax Cuts and Jobs Act tax benefits, among other items. Both House and Senate have passed their own budget resolutions, but the measures were markedly different. Notably, the Senate’s version does not include a tax component. All indications are that a compromise resolution will be comprehensive and include language renewing and extending the 100 percent bonus depreciation benefit that has been phasing out, the research and development tax credit that has expired and the Section 199A deduction for S-Corporations and other pass-through structures that will expire at the end of this year. Congressional leaders hope to wrap up the budget resolution process and finalize and pass a single, comprehensive budget reconciliation bill before Memorial Day.
Transportation – Truck Weights: In mid-March, Representative Tony Wied (R-WI) reintroduced the Safe Routes Act. This common sense, practical legislation would allow trucks traveling at the maximum gross vehicle weight on state roads to access the federal interstate highway system for short distances when it makes sense to do so. As we know, many states allow 5 axle rigs heavier than 80,000 pounds to travel on state roads. Unfortunately, federal highways are hard capped at 80,000 pounds. This results in trucks having to traverse narrower roads through small towns and cross walks on their way from the harvesting site to the sawmill when a safer, more efficient route could be available on the interstate.
Rep. Wied is a member of the House Transportation and Infrastructure Committee which will hold the pen in crafting a surface transportation reauthorization bill—also known as the Highway Bill—later this year and next. Already key industry champions like Glenn “GT” Thompson (R-PA) have signed onto the bill, as have T&I Committee members Mike Ezell (R-MS) and Mike Collins (R-GA). Rep. Jared Golden (D-ME) is also on the bill. The Hardwood Federation team will be working hard to build out the cosponsor list on this legislation in hopes of having its provisions included in the Highway Bill rewrite. We will keep you posted on progress.
In addition, Rep. Mike Collins (R-GA) is preparing to reintroduce the Freight Restriction Elimination for Safer Hauling Act of 2025. The bill is a close cousin of the Safe Routes Act in that it would allow a state to waive federal gross vehicle weight limits on its portion of the interstate for trucks hauling covered perishable commodities. The latter term is defined to specifically include raw logs, pulpwood, biomass or wood chips. Rep. Collins sits on the House Transportation and Infrastructure Committee.
Transportation – Shipping: In a move that expands the country’s trade dispute with China, the United States Trade Representative (USTR) recently issued proposed remedies in response to an investigation against China for trading practices that seek to achieve maritime dominance while manipulating markets. Although the investigation opened during the Biden administration, the current administration has issued the proposed remedies, which include “significant port service fees” against Chinese-built ships. According to a study by the shipping industry, USTR’s proposed fees will increase container shipping costs by at least 25%, adding approximately $30 billion in annual costs on U.S. businesses and farmers. The Hardwood Federation, in conjunction with its allies in the ocean shipping coalition, is sending a letter to USTR urging the Administration to reconsider its proposed remedies in a manner that will contain China’s market manipulation while mitigating additional financial burdens on U.S. exports.
Waters of the U.S: In a move that continues the back and forth related Section 404 water permits, EPA announced on March 12 that it would review the latest Waters of the United States (WOTUS) rule, issued by the Biden Administration, in search of ways to further narrow the scope of federal permits on U.S. water bodies. A more streamlined WOTUS rule would expedite harvest adjacent to rivers, lakes, marshes and other bodies of water designated as being subject to federal jurisdiction. Because the announcement was included in a batch of over a dozen statements outlining the Administration’s intent to revisit several EPA rules, details about a specific path forward by notice and comment is not known at this time.
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