On Saturday, U.S. President Donald Trump ordered a new trade investigation that could result in additional tariffs on imported lumber, in addition to the existing duties on Canadian softwood lumber and the impending 25% tariffs on all Canadian and Mexican goods set for next week.
In his third tariff inquiry within a week, Trump directed Commerce Secretary Howard Lutnick to begin a national security investigation on U.S. lumber imports under Section 232 of the Trade Expansion Act of 1962. This law was previously utilized by Trump for imposing tariffs on global steel and aluminum imports.
The investigation will extend to derivative products made from lumber, potentially including items like furniture and kitchen cabinets sourced from U.S. lumber previously exported.
The order mandates completion of the Commerce Department investigation within 270 days while also requiring new measures within 90 days to enhance the domestic lumber supply through easier permitting processes for lumber harvesting on public lands and better tree salvage from forests and waterways.
White House trade adviser Peter Navarro emphasized that the lumber import probe aims to counteract the actions of major lumber exporters like Canada, Germany, and Brazil, whom Navarro accused of "dumping lumber" into U.S. markets at the expense of economic prosperity and national security.
Furthermore, concerns were raised about the national security implications of relying heavily on imported lumber, particularly due to the significant amount of lumber the U.S. military uses for construction and the risks associated with depending on imports for a resource available domestically.
Although details on the potential tariff rate under the Section 232 lumber probe were not disclosed, Trump has previously hinted at imposing a 25% tariff rate on lumber and forest products.
These new tariffs would be in addition to the existing 14.5% combined anti-dumping and anti-subsidy duties imposed on Canadian softwood lumber, arising from a longstanding trade dispute between the U.S. and Canada over perceived unfair subsidies provided through low stumpage fees on Canadian public lands.
Additionally, the new lumber duties would compound the threat of the proposed 25% general U.S. tariffs on all Canadian and Mexican goods, scheduled to come into effect shortly unless certain conditions related to border security and fentanyl trafficking are met.