On Saturday, President Trump began an investigation into whether timber imports would pose a threat to American national security. This is a likely step to further burn ties with Canada, the largest exporter of wood to the United States.
The president directed his Secretary of Commerce, Howard Lutnick, to conduct the investigation. The findings of the investigation allow the president to apply tariffs on the import of wood. White House officials refused to say how long it took to investigate.
The executive memorandum signed by Trump ordered an investigation, accompanied by other documents to help White House officials increase the amount of timber sold annually, increase supply and prevent timber prices from rising.
Trade investigations could make Canada even more angry. Some of its citizens are seeking a boycott of American products over Trump's plan to impose tariffs on all Canadian imports that begin Tuesday. The president, who also plans to strike Mexico with similar tariffs, says taxation is a punishment for his failure to stave off the flow of drugs and immigrants to the United States.
Many Canadians are competing for Trump's claim that fentanyl is flowing from that country to the US.
Canada and the US have refrained from protecting the timber industry for decades. The country protects its own industries with tariffs and other trade measures, and discussed the legitimacy of these measures in conflicts both in the North American Free Trade Agreement and the World Trade Organization.
Canada provided $28 billion in timber to the US in 2021. Recent annual statistics were available from the US International Trade Commission. Canada continues to be far away from China, Brazil and Mexico as sources of imports.
The US also exported nearly $10 billion in timber to Canada in 2021 and $6.5 billion to Mexico.
White House officials said that while wood is an industry where the US should be almost completely self-sufficient based on its resources, American-made timber mills have been undermined by cheap imports from bad actors, putative ally.
Peter Navarro, a senior trade and manufacturing counselor, said in a call with a reporter on Friday that the “disastrous” timber and timber policy “driving construction and housing costs and infringes the US into the US market through a massive trade deficit arising from exporters such as dumping materials in Canada, Germany and Brazil.”
“It stops today with a pair of Trump's actions designed to enhance the supply and demand of wood and wood in America,” he said.
If not offset by increasing supply, timber duties could boost prices for imported wood and raise prices for a variety of industries, particularly construction. US research includes derivative materials such as kitchen cabinets.
The investigation could also raise questions about whether timber imports actually constitute a threat to national security.
The president has also launched a national security investigation into iron, aluminum and copper, but these metals are used directly by the military to make planes, ships and weapons. Asked about the justification of national security, White House officials said the military is the main consumer of timber.
Alan Rappyport Reports of contributions.
