NLBMDA Member Alert: One Month Tariff Reprieve & Potential New Lumber Tariff

The Trump Administration has announced a pause on 25% tariffs levied on most Canadian and Mexican goods, which went into effect on Tuesday, March 4th. The White House stated it would issue the one-month reprieve for goods compliant with the U.S. Mexico Canada Trade Agreement (USMCA). Tariffs on these goods will be reinstated on April 2nd assuming no new agreement is reached.

While an exhaustive list of commodities compliant with USMCA was not made readily available, NLBMDA has confirmed Canadian softwood lumber is included in the new tariff reprieve. Generally, goods wholly manufactured from originating materials in North America qualify as complaint under USMCA. This includes lumber and its derivative products along with most building materials.

The Canadian government announced that counter tariffs on C$30 billion in U.S. goods would remain in place though stated it would pause the rollout of a second round of tariffs valued at C$125 billion. This week, Doug Ford, the Premier of Ontario, announced a 25% increase on electricity exports to the US. The escalation prompted the White House to announce a 50% tariff on Canadian steel and aluminum. Hours after, Premier Ford rolled back his tariff threat following a conversation with Commerce Secretary Lutnick.

On Friday, President Trump reaffirmed the administration’s position that it intends to strengthen domestic timber production, signaling new targeted tariffs on Canadian lumber. Secretary Lutnick walked back these comments over the weekend stating these new tariffs would likely not be considered until next month.

The White House is continuing with its pursuit of its broader trade strategy to rebalance the global trading system. Today, 25% tariffs went into force on all steel and aluminum imports. The President issued a similar tariff in 2018 though those tariffs granted exclusions to the US’s major trading partners. Senate Majority Leader John Thune, while supportive of the President’s underling goal to address fentanyl and border security, cautioned the prolonged use of using tariffs as a negotiating strategy. “I hope these are temporary. I think the one thing that markets don’t like is uncertainty, and there’s obviously uncertainty around that tariff policy at the moment,” said Senator Thune in a statement with reporters.

Response Requested: Recognizing that many LBM dealers’ source Canadian softwood lumber, NLBMDA wishes to solicit member feedback pertaining to the new tariffs. To that end, please complete this brief survey by Friday, March 14th.

TAKE THE SURVEY!

Questions? Please contact NLBMDA Government Affairs Coordinator, Matthew Delaney, at MDelaney@dealer.org

Special Thanks to NLBMDA's Federal Advocacy Sponsors