U.S. President Donald Trump ordered a new trade investigation on Saturday that could lead to further tariffs on imported lumber. This move would add to the existing duties already imposed on Canadian softwood lumber and the upcoming 25% tariffs on all Canadian and Mexican goods, which are scheduled to take effect next week.
In his third tariff investigation within a week, President Donald Trump signed a memorandum instructing Commerce Secretary Howard Lutnick to initiate a national security investigation into U.S. lumber imports under Section 232 of the Trade Expansion Act of 1962. The order mandates that the Commerce Department conduct and finalize its investigation within a period of 270 days. This trade law, which grants the president the authority to impose tariffs on imports deemed a threat to national security, was previously used by Trump to justify tariffs on global steel and aluminum imports.
The scope of the investigation extends beyond raw lumber to include derivative products, such as furniture items like kitchen cabinets, which in some instances are manufactured using U.S. lumber that had been previously exported.
Trump also mandated actions within 90 days to expand the domestic lumber supply by simplifying the permitting process for timber harvesting on public lands and improving the recovery of fallen trees from forests and waterways.
The order directs agencies to issue new or updated guidance to enhance timber production, including accelerating the approval process for forestry projects under the Endangered Species Act.
The president has also aimed to address specific industries that, in his view, are being negatively impacted by foreign imports, which he argues are weakening domestic manufacturing and production.
The United States has been involved in a prolonged trade conflict with Canada over the import of softwood lumber. In 2023, the U.S. imported around 34 million cubic feet of softwood lumber, with Canada being the dominant supplier, providing more than 28 million cubic feet. In contrast, the next largest sources, Germany and Sweden, contributed a significantly smaller amount, shipping a combined total of less than 3.5 million cubic feet.
In 2016, the U.S. lumber industry filed the most recent legal challenge, urging the Commerce Department to take action. A statement from the British Columbia government claimed that Canadian lumber was being unfairly subsidized and dumped into the U.S. market at below-market prices.
Originally published on IBTimes
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