Trump Orders Investigation Into Lumber Forward of Doubtless Tariffs
US President Donald Trump is ordering the Commerce Division to launch an investigation into the nationwide safety hurt posed by lumber imports, laying the authorized groundwork for brand spanking new tariffs he’s pledged.
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Revealed Mar 01, 2025 • 2 minute learn
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(Bloomberg) — US President Donald Trump is ordering the Commerce Division to launch an investigation into the nationwide safety hurt posed by lumber imports, laying the authorized groundwork for brand spanking new tariffs he’s pledged.
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The investigation will look at whether or not exporters like Canada, Germany, and Brazil are dumping lumber into US markets on the expense of American financial prosperity and nationwide safety, in line with a senior administration official who briefed reporters on the situation of anonymity.
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Officers will look at the affect of overseas authorities subsidies, predatory commerce practices, and spinoff merchandise — and notably if international locations like China are artificially miserable the value of products like kitchen cabinetry. Trump has beforehand mentioned he’s eyeing 25% tariffs on lumber within the close to future, however the official mentioned the investigation might additionally lead to regulatory modifications to ease harvesting of timber.
Trump is concurrently signing an government order, titled “Liberating our Forests,” that may deal with streamlining the regulatory allowing course of, permitting extra harvesting of timber salvage.
The official declined to say how lengthy the investigation is anticipated to take, however indicated that the Commerce Division would transfer rapidly. The official additionally declined to say if eventual tariffs that resulted from the probe had been additive to Trump’s present plans to impose so-called reciprocal tariffs on different international locations, or a 25% levy on Canada and Mexico slated to hit subsequent week.
The motion on lumber serves twin political functions for the president. Trump has lengthy blamed forest upkeep relatively than local weather change for a spate of wildfires in California, together with the latest blazes that decimated giant swaths of the Los Angeles space.
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And softwood lumber has been a decades-old irritant within the commerce relationship between Ottawa and Washington, with the American trade accusing Canadian producers of dumping low-priced wooden over the border. The US argues Canada subsidizes its loggers by charging low-cost charges for harvesting, and has repeatedly slapped duties on Canadian softwood over time.
Final summer season, the US hiked levies on Canadian lumber to 14.54%, a stage that has already put strain on manufacturing there and raised considerations over the long run viability of some northern sawmills.
Nonetheless, a 25% tariff — particularly if added on prime of present duties — would trigger financial ache on each side of the border. US lumber manufacturing has been rising however the nation nonetheless depends on imports to satisfy demand. A big majority of US softwood imports come from Canada, in line with the Nationwide Affiliation of House Builders.
Trump additionally signed an government motion in February directing the Commerce Division to look at doable copper tariffs, a transfer senior administration officers forged as needed to assist rejuvenate home manufacturing of a steel essential for contemporary economies. Officers argued dumping and overcapacity in world markets had impacted home copper manufacturing, leaving weapons techniques and different essential merchandise depending on imports.
—With help from Brian Platt.
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