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Donald Trump has ordered a probe into dumping within the US lumber market, setting the stage for the business to hitch the widening basket of commodities focused by Washington’s world commerce battle.
The president on Saturday directed the Division of Commerce to analyze whether or not imports of lumber and wooden merchandise have been undermining home loggers in a method that posed a threat to US nationwide safety, days after ordering an analogous assessment of the copper business.
If the investigation finds proof of dumping, the president can impose retaliatory measures together with quotas and tariffs. Canada, by far the largest supply of US lumber imports, could be hardest hit.
“Clearly, one thing is happening right here. We all know that there’s huge subsidies with these exporters who’re profiting from our market,” mentioned a White Home official forward of the order.
“But it surely’s as much as [Commerce] Secretary Howard Lutnick to analyze this and are available again to the president with a report.”
Whereas Canadian lumber imports are already topic to tariffs of 14.5 per cent, the announcement marks the primary formal step in direction of dragging the business into Trump’s world commerce battle. Any new tariffs could be along with the pre-existing Canadian levies.
It comes on the eve of sweeping 25 per cent tariffs set to be launched on Canada and Mexico subsequent week, plus an extra 10 per cent obligation on Chinese language imports as Trump ratchets up the strain on US buying and selling companions.
The president has additionally sought to focus on particular industries the place he argues imports are undermining home business. He’s set to impose 25 per cent tariffs on metal and aluminium imports from March 12, following an analogous probe into that sector throughout his first time period.
On Tuesday he introduced an investigation into imports of copper, sparking fears that the steel could be the following sector slapped with tariffs.
The US has had a long-running feud with Canada over lumber imports. It imported about 34mn cubic ft of softwood lumber in 2023. The overwhelming majority of that — over 28mn cu ft — got here from Canada. The following largest, Germany and Sweden, shipped lower than 3.5mn cu ft mixed.
Forestry is large enterprise for Canada. In 2022, the sector contributed C$33.4bn to actual GDP, or about 1.2 per cent. In the identical 12 months Canada’s forest product exports have been valued at C$45.6bn, with the bulk destined for the US, in line with authorities knowledge.
British Columbia province, the place there’s a excessive focus of Canada’s forestry business, in addition to corporations, have spent a long time within the courts combating US levies and anti-dumping duties.
In 2016 the US lumber business launched the newest spherical of litigation, urging the commerce division to behave as “Canadian lumber is unfairly subsidised and dumped into the US market,” in line with a assertion from the BC authorities.
The dispute hinges on the Canadian forestry business’s apply of sourcing wooden from Crown land, or parks run by the provinces, so manufacturing and administration prices are decrease than for US forestry corporations who depend on non-public land.
Since turning into president, Trump has repeatedly raised the difficulty and threatened tariffs on wooden imports.
Derek Nighbor, president of the Forest Merchandise Affiliation of Canada, mentioned any improve in tariffs on lumber would harm forest sector staff on either side of the border, and on American households searching for reasonably priced housing.
“We needs to be targeted on strengthening our aggressive benefits, constructing extra reasonably priced housing, working collectively to deal with worsening wildfire dangers, and bringing extra North American wooden to the world,” he mentioned in an announcement final month.
However Andrew Miller, proprietor of Stimson Lumber and the chair of the US Lumber Coalition, mentioned: “Canada’s unfair commerce comes on the direct expense of US corporations and staff.”
