In his most recent attempt to escalate trade tensions, US President Donald Trump ordered an inquiry on Saturday into possible duties on lumber imports while simultaneously advocating for an increase in domestic supply.
In an executive order, Trump directed Commerce Secretary Howard Lutnick to launch an inquiry “to determine the effects on the national security of imports of timber, lumber, and their derivative products.”
New tariffs could be applied as a result of the study, adding to already-existing duties.
White House officials have previously accused exporters such as Canada, Germany, and Brazil of “dumping lumber into our markets at the expense of both our economic prosperity and national security.” These countries are the target of the probe.
For instance, Canada is one of the top exporters of softwood lumber worldwide, and the US is its top export destination.
The investigation under Section 232 of the Trade Expansion Act follows Trump’s announcement of tariff increases on steel and aluminum products, as well as his use of the same instrument to examine copper imports.
According to a White House official who spoke to reporters prior to the announcement, “bad actors” throughout the world create “massive overcapacity” with the aid of government subsidies.
The official, who spoke on condition of anonymity, said such dumping caused the world’s biggest economy to lose its own manufacturing capacities despite having natural resources.
While the United States has anti-dumping and countervailing duties on Canadian lumber, for example, officials added that this was not sufficient to address the problem.
The investigation will consider both imported articles and derivative products like furniture, the official said.
The report must be submitted to the president within 270 days, according to the text of the executive order.
Trump signed a second executive order on Saturday aimed at increasing US timber production, with the aim of lowering construction and housing costs.
Industry players have warned that imposing new tariffs on timber imports could have the opposite effect, potentially hitting housing affordability.
“Tariffs on lumber and other building materials increase the cost of construction and discourage new development,” National Association of Home Builders chairman Carl Harris said after Trump announced possible levies on Canada and Mexico.
“Consumers end up paying for the tariffs in the form of higher home prices,” he said.
Since returning to the White House in January, Trump has announced — and halted — steep duties on Canada and Mexico, and threatened reciprocal levies that could hit both friend and foe.
