What Does 2025 Hold? New Congress, Administration And Questions For The Hardwood Industry
The Hardwood Federation leaders believe there are three “Ts” to watch in 2025 in the new Congress and the second Trump Administration.
Dana Lee Cole, executive director, said tariffs, trade and taxes will be the advocacy efforts of the Hardwood Federation (HF) in early 2025. She spoke at the recent meeting of the Appalachian Lumbermen’s Club (ALC) in Concord, NC.
Cole said President Trump is well known for his embrace of tariffs as an effective trade strategy. In social media posts and in interviews, he has signaled that he is interested in pursuing tariffs, but products and targeted countries are currently unclear.
What Does 2025 Hold?
The Hardwood Federation is preparing for a worst-case scenario where hardwood products become subject to retaliatory tariffs like was experienced during the first Trump Administration. Cole said they are working with its executive leadership to discuss advocacy strategy as well as a potential funding formula for government relief.
The HF believes tax relief may be offered to businesses in 2025. The Tax Cuts and Jobs Act (TCJA) business tax deductions will likely be the centerpiece of legislative action in 2025. The ability to fully write off research and development costs in the year in which they were incurred expired in 2022. Now those costs have to be amortized over five years, essentially making the cost of R&D more expensive.
Cole reported that the GOP regained control of the U.S. Senate with 53 seats in the 100-seat chamber, picking up seats in West Virginia, Ohio, Pennsylvania and Montana. Democrats won several tight races and will have 47 seats in the Minority. For the first time in 17 years, Senate Republicans selected a new leader, Sen. John Thune (R-SD).
In the House, Republicans have a slim majority of just three seats. House Speaker Rep. Mike Johnson (R-LA) was re-elected.
New Congress
Cole said the first 100 days will be action-packed for both the Executive and Legislative branches of federal government. Whether Congress will produce any meaningful legislation in that timeframe remains to be seen.
The HF team is engaged to ensure the hardwood industry’s interests and policy priorities are at the forefront.
The next meeting of the ALC is March 11 at the Hotel Roanoke in Roanoke, VA. The Spring Beach Meeting is set for May 1-4 in North Myrtle Beach, SC.
More information is available at www.lumberclub.org.
