Trump orders new lumber tariff probe
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The news: Donald Trump on Saturday (Sunday AEDT) ordered a new tariff probe into US lumber imports under Section 232 of the Trade Expansion Act of 1962, which could result in additional import duties.
Commerce Secretary Howard Lutnick will oversee the trade investigation, which covers lumber and derivative products such as furniture.
The context: The US has long-standing trade disputes with Canada over lumber, including claims that Canada's stumpage fees create an unfair subsidy.
Trump has already imposed tariffs on Canadian softwood lumber and plans 25% tariffs on all Canadian and Mexican goods starting Tuesday. This is part of broader trade actions, including investigations into copper imports and digital services taxes.
The numbers: Any tariffs resulting from the probe would be added to existing 14.5% duties on Canadian softwood lumber and the 25% tariffs on all Canadian and Mexican imports set to take effect on Tuesday.
Canada exported USD28 billion in lumber to the US in 2021, nearly half of all US imports, The New York Times noted citing the latest available official data. The US exported USD10 billion of lumber to Canada and USD6.5 billion to Mexico.
The order directs the Commerce Department to complete the probe within 270 days, reviving a long-running US-Canada dispute over lumber trade and alleged unfair subsidies.
Trump also mandated new steps within 90 days to increase domestic lumber supply, including streamlining the permitting process for harvesting on public lands and salvaging fallen trees.
What they said: White House trade adviser Peter Navarro said the probe targets Canada, Germany and Brazil for "dumping lumber into our markets."
A White House official cited national security concerns, saying the US military consumes significant quantities of lumber.
The sources: The New York Times, Reuters
