Trump’s 25% tariff on Canadian and Mexican goods set to push timber prices higher

Posted on November 27, 2024   |  

Donald Trump plans to introduce a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports starting January 20, 2025.

China faces an extra 10% tariff on its goods unless it stops illegal drug flows into the U.S.

These tariffs will increase prices for imported timber and other forest products, affecting global trade.

The USMCA (U.S., Mexico, and Canada), which accounts for 30% of global GDP, plays a key role in forest product trade.

The U.S. and Canada are leading producers of timber and pulp, while Mexico is the top buyer of U.S. lumber.

Mexico deals with 5 to 15 million cubic meters of illegal timber annually, raising concerns about illegal logging.

The U.S. and Canada trade over $3 billion worth of softwood lumber each year, amid a long-standing dispute over softwood duties, currently at 14.54%.

The U.S. accuses Canada of selling timber at low prices, fueling their ongoing trade disagreements.