October 2025

For an issue that has been around for decades, the Canadian softwood lumber imports issue is moving at a breakneck pace. So fast in fact that the news release that appears later in this issue, the release entitled “U.S. Coalition Asks For Investigation,” became “old news” just as this magazine went to press. Fortunately, we were able to use this space to update the situation.

The U.S. Lumber Coalition got what they asked for in that release, and that was President Trump’s imposition of Section 232 tariffs on imports of softwood lumber products into the United States. With regard to Canada, this is in addition to the subsidy and dumping duties on Canadian softwood lumber that have been in effect for years and which have increased considerably this year—all stemming from the U.S. accusation that the Canadian government’s excessive financial subsidization of its softwood lumber industry allows their companies to ship lumber into the U.S. and beat down the U.S. softwood lumber industry.

Actually, the Section 232 tariffs pertain to all softwood lumber imports, not just Canada’s. The Coalition stated that the “Section 232 tariffs on softwood lumber product imports from around the world will facilitate a reliable supply of softwood lumber products made in the USA…and allow the U.S. industry to grow to its natural size to fully supply the U.S. housing market with lumber made in the USA.”

Trump signed the proclamation invoking Section 232 of the Trade Expansion Act of 1962 on September 30. In addition to imposing a 10% global tariff on imports of softwood lumber, it imposes a 25% global tariff on certain upholstered furniture, soon to increase to 30%, and a 25% global tariff on kitchen cabinets and vanities, which will increase to 50% on January 1.

The proclamation does note that trading partners who negotiate with the U.S. to address the threat of wood imports to the national security of the United States may be able to secure an alternative to the pending tariff increases. It also states that the United Kingdom, the European Union, and Japan will enjoy more favorable treatment that reflects the terms of their trade deals with the U.S.

An interesting spin, as stated in the proclamation, is that Trump believes an overreliance on foreign timber, lumber, and their derivative products could jeopardize U.S. defense capabilities, the construction industry, and economic strength.

“Wood products serve as essential inputs across multiple sectors, supporting national defense, critical infrastructure, economic stability, and industrial resilience in the United States,” Trump states. “The U.S. military spends over ten billion dollars annually on construction and is testing innovative wood products such as cross-laminated timber. It is vital for the United States to possess manufacturing capabilities in the wood and lumber sector to ensure readiness and guarantee the national security.”

The U.S. has been a net importer of lumber since 2016, despite having the practical production capacity to supply 95% of U.S. softwood consumption, according to the president. “America’s reliance on imported lumber is exacerbated by foreign government subsidies and predatory trade practices, which undermine the competitiveness of the U.S. wood products industry.”

Just before Trump’s tariff action with Section 232, the Canadian government announced a $1.2 billion loan guarantee and investment package to its softwood lumber industry.