Donald Trump orders investigation on US lumber imports ahead of likely tariffs

According to the order, the probe will focus on lumber-derived products, which may include furniture such as kitchen cabinets. The investigation must be completed within 270 days.

In addition, Trump has called for measures within 90 days to boost domestic lumber supply by simplifying the permit process for harvesting timber from public lands. This includes improving the collection of fallen trees from forests and waterways. The order also directs agencies to update their policies to speed up forestry project approvals under the Endangered Species Act.

White House trade adviser Peter Navarro said the investigation aims to counter the impact of major lumber-exporting countries such as Canada, Germany, and Brazil. He accused them of “dumping lumber into our markets at the expense of both our economic prosperity and national security”.

“That stops today with a pair of Trumpian actions designed to both bolster supply of and demand for American timber and lumber,” Navarro told reporters during a call before the signing, Reuters reported.

A White House official stated that depending on foreign lumber poses a potential national security risk. This is partly because the US military uses large amounts of lumber for construction and because relying on imports for a resource that is available domestically could harm the US economy.

Trump has previously mentioned considering a 25% tariff on lumber and forest products. If implemented, any new tariffs from this investigation would be in addition to the current 14.5% duties on Canadian softwood lumber. These existing tariffs stem from a long-standing trade dispute between the US and Canada over stumpage fees on Canadian public lands, which Washington considers an unfair subsidy.

The official added that these new lumber tariffs would also be in addition to the broader 25% tariff on all Canadian and Mexican imports. This general tariff is set to take effect on Tuesday unless Trump is convinced by the two countries’ efforts to strengthen their borders and curb fentanyl trafficking.

This is Trump’s third tariff-related investigation in a week. On Tuesday, he ordered a Section 232 probe into copper imports, aiming to boost US production of the metal, which is crucial for electric vehicles, military equipment, and the power grid.

Last month, he directed US Trade Representative Jamieson Greer to restart investigations into tariffs on countries that impose digital services taxes on American tech firms. Canada, France, Britain, Italy, Spain, Austria, India, and Turkey could all face penalties under this move.

(with inputs from Reuters)

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