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Trump Orders Probe into Lumber Imports, Expands Trade War Measures
President Donald Trump has directed the Ministry of Trade to investigate whether the import of lumber and wood products is undermining the domestic logging industry, posing a potential risk to US national security. This move follows a similar review of the copper industry just days earlier.
If evidence of dumping is found, Trump could impose retaliatory measures, including quotas and tariffs. Canada, the largest source of US lumber imports, would be the most affected.
"The United States faces significant vulnerabilities in the supply chain of wood, lumber, and their derivative products due to imported materials," Trump stated.
While Canadian timber already faces a 14.5% tariff, this investigation marks the first formal step to include the lumber industry in Trump’s global trade war. Any new tariffs would be in addition to the existing Canadian fees.
This announcement precedes the introduction of 25% tariffs on Canadian and Mexican imports next week, alongside another 10% duty on Chinese products. Trump continues to exert pressure on US trade partners.
Targeting specific industries, Trump claims that imports are harming domestic businesses. A similar probe into steel and aluminum imports resulted in 25% tariffs during his first term.
On Tuesday, Trump also announced an investigation into copper imports, signaling that this sector could face additional tariffs.
US-Canada Timber Dispute
The US has a long-standing dispute with Canada over timber imports. In 2023, the US imported approximately 34 million cubic feet of timber from Canada, far exceeding imports from other major suppliers like Germany and Sweden, which together accounted for less than 3.5 million cubic feet.
Forestry is a major industry in Canada, contributing $33.4 billion to the country’s GDP in 2022, or about 1.2%. That same year, Canadian forest product exports totaled $45.6 billion, with the majority destined for the US, according to government data.
The province of British Columbia, home to a significant portion of Canada’s forest industry, has spent decades in legal battles against US tariffs and anti-dumping duties.
In 2016, the US lumber industry initiated the latest round of lawsuits, urging the Department of Commerce to address concerns that "Canadian timber is unfairly subsidized and dumped into the US market," as stated in a declaration by the BC government.
The Core of the Dispute
The conflict stems from the Canadian forest industry’s practice of sourcing wood from crown lands or provincial parks, resulting in lower production and management costs compared to US companies that rely on private land.
Since taking office, Trump has repeatedly raised this issue and threatened additional tariffs on lumber imports.
Industry Reactions
Derek Nighbor, President of the Canadian Forest Products Association, warned that increased lumber tariffs would harm forestry workers on both sides of the border and make housing less affordable for American families.
"We should focus on strengthening our competitive advantages, building more affordable housing, mitigating wildfire risks, and expanding North American wood exports globally," he said in a statement last month.
Conversely, Andrew Miller, owner of Stimson Lumber and chairman of the American Lumber Coalition, argued, "Canada’s unfair trade practices come at the direct expense of American companies and workers."
As the investigation unfolds, the lumber industry remains a focal point in the ongoing US-Canada trade tensions.
