Latest News

Trump orders new tariff investigation into US lumber imports

The U.S. president Donald Trump ordered on Saturday a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian softwood timber and 25% tariffs due next week on all Canadian and Mexican products.

In his third new investigation in a single week, Trump has signed a memorandum ordering Commerce Secretary Howard Lutnick that he initiate a national-security investigation into U.S. Lumber Imports under Section 223 of the 1962 Trade Expansion Act. Trump used the same trade law to impose tariffs against global imports of steel and aluminum.

The investigation covers derivative products such as furniture, kitchen cabinets and other items made of U.S. wood that has been exported.

The order stated that the Commerce Department's investigation must be concluded within 270 calendar days.

Trump ordered that new measures be taken within 90 days in order to increase the supply of domestic lumber. This included streamlining the permits process for harvesting timber from public lands, and improving the salvaging of fallen trees and forest and waterways.

The order requires new or updated guidance from the agency to increase timber production. This includes faster approvals of forestry projects in accordance with the Endangered Species Act.

Peter Navarro, White House Trade Advisor, said that the lumber import investigation would counteract actions by big lumber exporters, including Canada, Germany, and Brazil. He said they were "dumping lumber on our markets, at the expense of our economic prosperity and our national security."

He told reporters in a conference call before the signing that "that stops today" with two Trumpian measures designed to boost both supply and demand of American lumber and timber.

White House officials said that an increasing reliance on lumber imports could pose a national security threat, partly because the U.S. Military consumes large quantities of lumber in its construction activities. They also stated that a growing dependence on lumber imports is dangerous to the U.S. Economy because there are ample supplies domestically.

The official didn't provide any details about a proposed tariff under the Section 232 investigation, but Trump told reporters earlier this month that he thought of imposing a 25 percent tariff on lumber and other forest products.

Officials said that any tariffs resulting in the investigation would be added to existing anti-dumping duties and anti-subsidy duty on Canadian softwood timber.

The low Canadian stumpage fees on public land, which Washington claims is an unfair subsidy, led to these trade disputes. The majority of U.S. wood is harvested on private land, at rates determined by the market. Home builders have long complained about the tariffs, claiming that they raise lumber prices and contribute to inflation in home prices.

Officials said that the new lumber tariffs would also be added to Trump's 25% general U.S. Tariffs on all Canadians and Mexicans goods, which are due to go into effect on Tuesday. This is unless Trump has been persuaded to change his mind by both countries' efforts at securing their borders and stopping fentanyl traficking.

The new tariff investigation follows Trump's Tuesday order for a new Section 232 on copper imports. This is aimed at rebuilding U.S. manufacturing of a critical metal used in electric vehicles, military equipment and the power grid.

Trump directed U.S. trade representative Jamieson Greer on February 21 to resume investigations in order to impose tariffs on imported goods from countries that tax digital services on U.S. tech companies. Canada, France, Britain Italy, Spain Austria, India, and Turkey would be the next targets for these penalties. (Reporting and editing by Chizu Nomiyama, Daniel Wallis and Chizu Nomiyama; Additional reporting and editing by Trevor Hunnicutt, David Shepardson and Andrea Shalal)

(source: Reuters)