NLBMDA Member Alert: Recapping White House’s Latest Actions 
on Tariffs and Timber

Over the past 72 hours, the Trump Administration has taken several actions intended to strengthen domestic timber production. The actions were announced nearly simultaneously as a 25% tariff on most goods originating from Canada and Mexico went into effect at 12:00 am on Tuesday. In response, the Government of Canada announced a 25% tariff on $30 billion on goods exported from the U.S. to Canada. The Canadian government stated the countermeasures will remain in effect until the U.S. government eliminates its tariff against Canadian goods. Reports suggest that President Trump and Canadian Prime Minister Justin Trudeau are likely to meet today to discuss the trade dispute. In an interview with the media, Commerce Secretary Howard Lutnick further indicated that relief on tariffs could be announced later today.

The White House also announced that an additional 10% tariff would be levied on goods originating from China, doubling the total tariff on Chinese products to 20%. In response, China has imposed an additional 15% tariff on imports of U.S. farm products. During an address to Congress on Tuesday night, President Trump acknowledged the potential for "a little disturbance" from tariffs.

Commerce Department Announces Preliminary Anti-Dumping Duties Adjustment
Coinciding with the recent executive actions, the Department of Commerce has announced a preliminary action to raise anti-dumping duties on Canadian softwood lumber. The announcement is a result of an administrative review process conducted by the Commerce Department each year. In August 2024 the Commerce Department increased the combined anti-dumping and countervailing duty from 8% to 14.54%.

On Monday, the Commerce Department “preliminary determined” that it intends to raise the anti-dumping duty from 7.80 percent to 20.07 percent, a nearly 3x increase. The duty hike would bring the total rate to 26.75 percent. A final determination is expected to be released in August and the proposed anti-dumping rate may be revised ahead of that final determination. The potential new combined rate also does not include an adjustment to the countervailing duty rate. The Commerce Department is expected to announce a potential adjustment to that rate in July or August. As outlined below, Canadian lumber could be taxed as high as 51.81% when also factoring in the 25% across-the-board tariff that is currently in effect.

Over the last several weeks, NLBMDA has been leading discussions with strategic industry partners and will continue to closely monitor new developments and engage with stakeholders in Washington in order to advance the priorities of the LBM industry. We will provide an updated communication detailing NLBMDA’s advocacy strategy shortly.

In addition, the White House recently released two executive actions specifically targeting timber and lumber:

1. Addressing The Threat to National Security from Imports of Timber, Lumber

NLBMDA shared this latest action from the White House in NLBMDA Weekly The order directs the Secretary of Commerce, Howard Lutnick, to initiate an investigation to, “determine the effects on national security of imports of timber, lumber and their derivative products.” The action further directs the Department of Commerce to consult with the Defense Department and other executive departments to evaluate potential security risks. Secretary Howard Lutnick is required to submit a report on potential findings as well as any recommended actions no later than November 26th, 2025. The White House cited “ample” domestic timber resources and unfair subsidies as reasoning for the investigation.

“It is the policy of the United States to ensure reliable, secure, and resilient domestic supply chains of timber, lumber, and their derivative products. Unfair subsidies and foreign government support for foreign timber, lumber, and their derivative products necessitate action under section 232 of the Trade Expansion Act to determine whether imports of these products threaten to impair national security.”

2. Immediate Expansion of American Timber Production

In following with the White House’s America First Trade Policy, the Administration has announced efforts to reduce the reliance of lumber from foreign producers. The White House reasons that the United States’, “inability to fully exploit domestic timber supply has impeded the creation of jobs and prosperity, contributed to wildfire disasters, degraded fish and wildlife habitats, increases the cost of construction and energy, and threatened our economic security”. According to statistics published by the U.S. International Trade Commission, the United States imported $61 billion worth of lumber with Canadian lumber representing nearly half of all lumber imports.

To achieve the Administration’s target, the order directs both the Secretary of the Interior and Secretary of Agriculture to issue updated guidelines to “facilitate increased timber production and sound forest management.” Additionally, the order states that both Department leads shall submit legislative proposals that would, “expand authorities to improve timber production.”

The Administration’s new guidance sets out an aggressive timeline to strengthen domestic timber production. To achieve this goal the order directs relevant agencies to eliminate, to the extent permissible, permitting processes which would cause undue delays. Through decreasing foreign reliance, the Trump Administration is seeking to minimize the impacts the larger trade dispute would have on timber prices.

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 7th.

TAKE THE SURVEY!

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

Special Thanks to NLBMDA's Federal Advocacy Sponsors