On Saturday, President Trump took a bold step by launching an investigation into whether the importation of lumber poses a threat to the national security of the United States. This move could potentially escalate tensions with Canada, which stands as the largest wood supplier to the U.S.
Trump tasked his commerce secretary, Howard Lutnick, with spearheading this inquiry. Depending on the findings, the president could impose tariffs on lumber imports. However, the timeline for the investigation remains unspecified by White House officials.
Alongside signing the executive memorandum to initiate the probe, another directive was introduced. This aims to increase the annual volume of lumber available for sale, thereby boosting supply and helping stabilize timber prices.
Forecasts suggest this trade investigation might not sit well with Canada. In response to Trump’s proposed tariffs on all Canadian imports starting Tuesday, some Canadians have advocated for a boycott of American goods. The president argues that these tariffs, which might extend to Mexico, are necessary to penalize these countries for not curbing the influx of drugs and migrants into the U.S.
A number of Canadians dispute Trump’s claim that their country is a source of fentanyl entering America.
For years, Canada and the U.S. have been at loggerheads over protectionist measures in the lumber industry. Both nations have deployed tariffs and other strategies to safeguard their sectors, frequently clashing over these measures in forums like NAFTA and the World Trade Organization.
According to the latest data from the U.S. International Trade Commission, Canada supplied $28 billion worth of lumber to the U.S. in 2021, accounting for almost half of the nation’s total lumber imports. In the ranks of U.S. lumber import origins, Canada is followed at a distance by China, Brazil, and Mexico.
In the same year, the U.S. exported nearly $10 billion in lumber to Canada and a further $6.5 billion to Mexico.
Officials from the White House insist that, given its resources, the U.S. should strive for self-sufficiency in the lumber industry. However, they allege that affordable imports have historically undermined American lumber mills, with some of these imports coming from countries that are supposed allies.
During a Friday call with reporters, Peter Navarro, senior counselor for trade and manufacturing, criticized the current timber and lumber policies as disastrous. He argued they inflate construction and housing costs and economically harm the U.S. through substantial trade deficits stemming from exporters like Canada, Germany, and Brazil overwhelming the market with lumber.
“These issues end today with a couple of Trumpian initiatives aimed at boosting both supply and demand for U.S. timber and lumber,” Navarro declared.
If the imposition of tariffs isn’t matched by corresponding increases in domestic supply, it might lead to higher prices for imported wood, affecting sectors like construction. The investigation will also cover derivative lumber products, including kitchen cabinets.
This initiative is bound to stir discussions and potential objections over whether lumber imports genuinely undermine national security.
Previously, the president has initiated similar national security probes into steel, aluminum, and copper, metals directly used by the military for manufacturing aircraft, ships, and weapons. When questioned about the national security rationale, a White House official pointed out that lumber is also heavily utilized by the military.
Alan Rappeport contributed to this reporting.
