Lock the White House Watch Newsletter for free
Your Guide to Washington and the World’s 2024 US Election Means
Donald Trump ordered an investigation into dumping in the US wood market and set the stage for industry to take part in a expansion basket of goods targeted at Washington’s global trade war.
A few days after ordering a similar review of the copper industry, the president on Saturday directed the Commerce Department to investigate whether imports of timber and timber products would harm domestic loggers in ways that pose a risk to U.S. national security.
If the investigation finds evidence of dumping, the president can impose retaliatory measures, including allocations and tariffs. Canada is the biggest source of US wood imports, but will be hit hardest.
“The United States faces a major vulnerability in the timber supply chain as imported wood, timber and its derivatives are dumped into the US market,” Trump ordered.
Although Canadian timber imports are already subject to 14.5% tariffs, the announcement is the first formal step to drag the industry into Trump’s global trade war. New customs duties will be in addition to existing Canadian taxes.
It’s on the eve of clearing out the 25% tariffs scheduled to be introduced in Canada and Mexico next week, plus an additional 10% obligation on Chinese imports as Trump strengthens pressure on US trading partners.
The president also sought to target specific industries that he claimed imports were undermining domestic industries. He is due to impose a 25% tariff on steel and aluminum imports from March 12, following a similar investigation into the sector during his first term.
On Tuesday, he released an investigation into copper imports, sparking fear that metals will become the next sector slapped at tariffs.
The US has a long-term feud with Canada over the import of wood. In 2023, we imported approximately 34 million cubic feet of coniferous wood. The majority (over 28 million Cu ft) came from Canada. Next, the largest of Germany and Sweden shipped Cu ft, totaling less than 3.5mn.
Forestry is a big business for Canada. In 2022, the sector donated $33.4 billion to actual GDP or approximately 1.2%. In the same year, government data showed that Canadian forest products exports were valued at C$45.6 billion, with the majority being directed to the US.
British Columbia, a Canadian forestry industry and business-focused state, has spent decades in courts fighting our tax and anti-dumping duties.
In 2016, the US lumber industry launched its latest lawsuit, urging the commercial sector to act, saying “Canadian lumber is unfairly subsidized and dumped in the US market,” according to a statement from the BC government.
The dispute falls on Canadian forestry industry practices procuring timber from crown land, or provincially operated parks, resulting in lower production and management costs than US forestry companies that rely on private land.
Since becoming president, Trump has repeatedly raised issues, threatening tariffs on the import of wood.
Derek Nyver, president of the Canadian Forest Products Association, said the increase in timber tariffs would hurt employees in the forest sector on both sides of the border and American families seeking affordable housing.
“We should focus on enhancing competitive advantages, building more affordable housing, working together to address the risk of worsening wildfires and bringing more North American wood into the world,” he said in a statement last month.
But Andrew Miller, owner of Stimson Lumber and chairman of the U.S. Lumber Coalition, said, “Unfair Canadian trade is at the direct cost of American businesses and workers.”
