Trump Orders New Trade Probe, Threatens Higher Tariffs on Lumber Imports

U.S. President Donald Trump has launched a new trade investigation that could lead to additional tariffs on imported lumber, further escalating tensions with Canada. On Saturday, Trump directed Commerce Secretary Howard Lutnick to initiate a national security investigation under Section 232 of the Trade Expansion Act of 1962, the same law used to impose steel and aluminum tariffs.

The probe covers derivative lumber products, including furniture, and aims to counter alleged dumping by Canada, Germany, and Brazil. White House trade adviser Peter Navarro stated the move is meant to protect U.S. economic prosperity and national security. Trump is also pushing to boost domestic lumber supply by streamlining permits for harvesting on public lands and expediting forestry project approvals under the Endangered Species Act.

The White House cited concerns over national security, emphasizing that the U.S. military heavily relies on lumber for construction. While a specific tariff rate was not disclosed, Trump has suggested imposing a 25% tariff on lumber and forest products. Any new duties would add to the existing 14.5% anti-dumping and anti-subsidy tariffs on Canadian softwood lumber.

The decision comes amid a long-standing U.S.-Canada trade dispute over Canada’s low stumpage fees, which the U.S. claims create an unfair subsidy. Homebuilders argue that tariffs drive up lumber costs, worsening home price inflation.

The lumber probe follows Trump’s recent Section 232 investigations into copper imports and digital services taxes on U.S. tech firms. Additionally, a 25% tariff on all Canadian and Mexican goods is set to take effect unless both countries take stronger measures against fentanyl trafficking. These trade actions signal a broader push for economic protectionism as Trump seeks to bolster U.S. industries ahead of the upcoming election.