Trump Launches Lumber Import Probe, Threatens New Tariffs on Canada

U.S. President Donald Trump has initiated a trade investigation that could result in additional tariffs on imported lumber, piling onto existing duties on Canadian softwood lumber and the looming 25% tariffs on all Canadian and Mexican goods set to take effect next week. In his third trade probe in a week, Trump signed a memo directing Commerce Secretary Howard Lutnick to launch a national security investigation into U.S. lumber imports under Section 232 of the Trade Expansion Act of 1962—the same law he previously used to justify tariffs on steel and aluminum imports. The probe includes derivative products such as furniture, including kitchen cabinets, some of which are made from U.S. lumber that had been exported and reimported. The Commerce Department has 270 days to complete its investigation. Trump also ordered measures to boost domestic lumber supply within 90 days by streamlining permits for logging on public lands and improving the salvage of fallen trees from forests and waterways. Additionally, agencies will revise guidance to speed up approvals for forestry projects under the Endangered Species Act.

Concerns Over National Security and Economic Impact

White House trade adviser Peter Navarro claimed that major lumber exporters—including Canada, Germany, and Brazil—are "dumping lumber into our markets at the expense of both our economic prosperity and national security." He stated that Trump's actions would both increase American timber supply and support demand for domestic lumber. A White House official argued that relying on imported lumber poses a national security risk, citing the U.S. military’s need for lumber in construction projects and the potential dangers of dependence on foreign sources despite ample domestic supply. The official did not specify the potential tariff rate under the new Section 232 probe, but Trump has previously suggested a 25% tariff on lumber and forest products. If imposed, this would be added to the current 14.5% combined anti-dumping and anti-subsidy duties on Canadian softwood lumber—part of a longstanding trade dispute over Canada’s lower stumpage fees for public land logging, which Washington views as an unfair subsidy.

Industry and Economic Reactions

Critics, including U.S. homebuilders, warn that these tariffs could raise lumber prices and contribute to housing inflation. Canada, which has long challenged U.S. lumber duties, may retaliate through legal action under trade agreements. The new probe follows Trump’s recent orders to investigate copper imports and revive tariff threats against countries imposing digital services taxes on U.S. tech giants. With a 25% general tariff on all Canadian and Mexican goods set to begin Tuesday—unless Trump is convinced they have sufficiently addressed border security and fentanyl trafficking—the U.S.-Canada trade relationship faces mounting pressure.

See more in: https://www.cbc.ca/news/world/trump-lumber-imports-1.7472500