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Trump says imports of wood products may pose national security threat to U.S. — raising fears in B.C.

B.C.’s forestry sector is on edge as it awaits the results of a U.S. Commerce Department investigation into the imports of wood products, a move that could potentially lead to further tariffs on the struggling industry.

The investigation, prompted by U.S. President Donald Trump’s Section 232 inquiry into the national security implications of importing timber, lumber, and derivative products, has already resulted in a high 35 per cent duty on B.C.’s softwood lumber industry. The potential for additional tariffs has experts warning of more mill closures and job losses.

Russ Taylor, a forestry industry consultant and analyst, expressed concerns about the broad-based approach the U.S. could take in imposing tariffs, noting that while lumber may see a lower tariff, other wood products like plywood, OSB, and pulp could face higher tariffs.

Under Section 232 of the Trade Expansion Act of 1962, the U.S. government can investigate imports that pose national security threats. Past investigations have led to tariffs on steel, aluminum, autos, and copper, with detrimental effects on the Canadian economy.

The U.S. is a critical market for B.C. lumber exports, accounting for over two-thirds of the industry’s approximately $10 billion market. However, recent years have seen numerous mill closures and job losses in B.C., with major forestry companies shifting operations to the U.S.

Taylor highlighted the importance of Canadian lumber in the U.S. market, noting that U.S. mills would struggle to fill the gap left by a lack of Canadian imports. He also warned that U.S. homebuilders would ultimately bear the brunt of increased costs resulting from tariffs on Canadian lumber.

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Forests Minister Ravi Parmar indicated that the Section 232 investigation results could be released in the fall, potentially leading to further measures against the Canadian forestry sector. Parmar suggested that quotas could be imposed to limit forestry product imports, but Taylor expressed skepticism about the necessity of quotas given the current high duties.

As B.C.’s forestry sector braces for potential impacts from the U.S. investigation, industry stakeholders are closely monitoring developments and preparing for potential challenges ahead.

Trump’s Impact on the Lumber Industry

Recent Federal Supports Provide Hope

With President Trump’s ever-changing decisions, it’s hard to predict his next move. However, Minister Parmar remains optimistic about the recently-announced federal supports for the lumber industry. These supports come at a crucial time as the industry awaits the results of an ongoing investigation.

Standing Up for the Middle Class

Minister Parmar emphasized the importance of the president recognizing his commitment to stand up for the middle class. Despite his mission, Trump’s actions have resulted in what Parmar describes as the biggest tax on the middle class. This tax directly impacts those who are simply trying to build or rebuild their homes.

As the lumber industry faces uncertainty, the federal supports offer a glimmer of hope. Trump’s decisions may be unpredictable, but the industry remains resilient in the face of challenges.

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