In a 6-3 decision issued late last week, the Supreme Court ruled that the International Emergency Economic Powers Act does not give the president blanket authority to impose the broad reciprocal and fentanyl-related tariffs announced in 2025. That ruling invalidates the 20% duty imposed on many Vietnamese imports under the U.S.-Vietnam trade framework since October.

However, Section 232 national-security tariffs on wood products remain in place. That includes the existing 10% on softwood lumber and 25% on kitchen cabinets and upholstered furniture. The higher 30-50% increases that were floated earlier have been pushed back to 2027 and are unaffected for now.

The negotiated Vietnam deal was tied to the emergency-powers authority that just got struck down, so it probably does not survive in its current form. Vietnamese hardwood plywood, mouldings, and cabinet components could now face the new, more uniform 15% global tariff applied to most trading partners under separate trade statutes, rather than enjoying the lower negotiated rate. The net effect for many importers is still higher costs than pre-2025 levels, though potentially less severe than the 20% hit they were facing.

Domestic hardwood lumber sellers and U.S.-based cabinet manufacturers may see a competitive edge if import prices rise further or if uncertainty slows shipments from Vietnam. If furniture and cabinet shipments from Vietnam slow, this could put some downward price pressure on low-grade Poplar, Alder, and Soft Maple. Keep an eye on any refund processes for duties already paid under the invalidated tariffs and on upcoming trade negotiations. The next few months could bring both opportunities and unwelcome volatility.