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Donald Trump has ordered an investigation into the US raw materials, setting the phase for the industry to join the widespread basket of goods targeted by the global trade war in Washington.
The President on Saturday led the Department of Trade to investigate whether imports of raw materials and wood products were undermining local cutters in a way that posed a risk to US national security, day after ordering a similar review of the copper industry.
If the investigation finds evidence of throwing, the president may impose vengeful measures, including quotas and fees. Canada, so far the largest source of raw material imports, would be more difficult.
“Clearly, something is happening here. We know that there are massive subsidies with these exporters who are benefiting from our market, ”a White House official said before the order.
“But it is up to the Howard Lutnick to investigate this and return to the president with a report.”
While imports of Canadian raw materials are already subject to 14.5 percent tariffs, the announcement marks the first official step towards delaying the industry in the Global Trump Trade War. Anydo new fee would be in addition to Canadian pre-existing Canadian taxes.
It comes on the verge of tariffs included 25 percent set in Canada and Mexico next week, plus a further 10 percent task for Chinese imports while Trump increases pressure on US trading partners.
The president has also sought to target specific industries, where he argues that imports are undermining the domestic industry. It is set to impose 25 percent tariffs on steel and aluminum imports from March 12, following a similar investigation in that sector during its first term.
On Tuesday he announced an investigation into copper imports, fearing that the metal would be the other fee -hit sector.
SH.BA has had a long quarrel with Canada over imports of raw materials. It imported about 34 million cubic meters of soft soft wood in 2023. Much of that – over 28MM Cu FT – came from Canada. The largest, Germany and Sweden, sent less than 3.5MN Cu ft combined.
Forestry is a big business for Canada. In 2022, the sector contributed c 33.4bn $ in real GDP, or about 1.2 percent. In the same year, exports of Canada’s forest products were estimated at 45.6 billion C, with the majority intended for the US, according to government data.
The British province of Colombia, where there is a high concentration of Canada’s forest industry as well as companies, have passed decades in the courts fighting US taxes and anti-dumping tasks.
In 2016 the US raw material industry began the latest round of court cases, asking the Department of Trade to act as “Canadian lumber has been unfairly subsidized and laid in the US market”, according to a statement by the BC government.
The dispute depends on the practice of the Canadian forest industry for the aid of wood from the crown land, or the parks directed by the provinces, so production and administration costs are lower than for American forest companies relying on private land.
Since becoming president, Trump has repeatedly raised the issue and threatened tariffs on wood imports.
Derek Nighbor, president of the Canadian Forestry Products Association, said any increase in timber tariffs would damage forest sector employees on both sides of the border, and for American families seeking affordable housing.
“We must be focused on strengthening our competitive advantages, building the most affordable housing, working together to address the deterioration of wild fire risks and the behavior of more North America’s wood in the world,” he said in a statement last month.
But Andrew Miller, owner of Stimson Lumber and the head of the US Coalition Coalition, said: “Canada’s unjust trade comes with the direct expenses of US companies and workers.”
