U.S. Investigation into Lumber/Timber Imports Could Lead to Tariffs

Trade Update • March 4, 2025

n March 1, 2025, the U.S. announced an investigation into whether imports of timber, lumber, and their derivative products pose a threat to the national security and economic stability of the United States. This move aligns with previous investigations into other key commodities, such as copper, underscoring the administration’s focus on securing critical supply chains.

The Investigation/Order

The investigation, directed under Section 232 of the Trade Expansion Act, aims to determine whether the nation’s reliance on imported wood products compromises its defense capabilities and industrial resilience. It will culminate in a detailed report identifying vulnerabilities in the lumber supply chain, with strategic recommendations to bolster the domestic wood products industry. The Department of Commerce (DOC) must submit this report within 270 days of the Executive Order’s issuance.

President Donald J. Trump’s Executive Order states that the wood products industry is “a critical manufacturing industry essential to the national security, economic strength, and industrial resilience of the United States.” The order highlights the industry’s vital role in supporting downstream civilian industries, particularly construction. However, it also raises concerns about the adverse effects of imported timber, lumber, and derivative products, citing factors such as:

• Market Dumping: Foreign wood products flooding the U.S. market at artificially low prices.
• Unfair Foreign Subsidies: Government support in other countries giving foreign producers an unfair advantage.
• Supply Chain Vulnerabilities: Risks associated with over dependence on international suppliers.

Fact Sheet: President Donald J. Trump Addresses the Threat to National Security from Imports of Timber, Lumber, and their Derivative Products.

Key Factors Under Investigation

The Department of Commerce will assess several crucial factors to determine the impact of timber and lumber imports on national security:

• Domestic Demand vs. Supply: Evaluating the current and projected demand for timber (unprocessed wood) and lumber (processed wood such as milled planks) in the U.S., along with the capacity of domestic producers to meet this demand.
• Foreign Influence and Trade Practices: Examining the role of major exporting nations and the impact of foreign government subsidies and predatory trade practices on the competitiveness of the U.S. wood products industry.
• Domestic Production Expansion Feasibility: Assessing whether the U.S. can increase its domestic production capacity to reduce reliance on imports.
• Trade Policy Implications: Reviewing existing trade policies and considering additional measures such as tariffs, quotas, or export controls to protect national security.

Potential Outcomes and Policy Actions

Following the investigation, the DOC’s final report will outline recommended actions to mitigate risks associated with timber and lumber imports. These recommendations may include:

1. Tariffs or Quotas: Imposing restrictions on imported timber and lumber to protect domestic producers.
2. Export Controls: Regulating the export of U.S.-produced wood products to maintain supply chain stability.
3. Incentives for Domestic Production: Encouraging investment in the U.S. wood industry through subsidies, tax breaks, or regulatory reforms.
4. Strategic Infrastructure Investments: Strengthening the U.S. supply chain through improved logistics and permitting reforms to streamline domestic production expansion.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! gts@ghy.com, or call +1 (800) 667-0771.