President Trump on Saturday initiated an investigation into whether or not imports of lumber threaten America’s nationwide safety, a step that’s more likely to additional inflame relations with Canada, the biggest exporter of wooden to america.
The president directed his commerce secretary, Howard Lutnick, to hold out the investigation. The outcomes of the inquiry may enable the president to use tariffs to lumber imports. A White Home official declined to say how lengthy the inquiry would take.
An government memorandum signed by Mr. Trump ordered the investigation and was accompanied by one other doc that White Home officers mentioned would broaden the amount of lumber supplied on the market every year, rising provide and serving to to make sure that timber costs don’t rise.
The commerce inquiry is more likely to additional anger Canada. A few of its residents have referred to as for boycotts of American products over Mr. Trump’s plans to impose tariffs on all Canadian imports starting on Tuesday. The president, who additionally plans to hit Mexico with related tariffs, says the levies are punishment for failure to stem the stream of medicine and migrants into america.
Many Canadians have contested Mr. Trump’s assertion that fentanyl is flowing from its nation into america.
Canada and america have sparred over protections within the lumber trade for many years. The international locations have protected their very own industries with tariffs and different commerce measures, and argued in regards to the legitimacy of these measures in disputes each underneath the North American Free Commerce Settlement and on the World Commerce Group.
Canada offered $28 billion of lumber to america in 2021 — the newest yr statistics have been out there from the U.S. Worldwide Commerce Fee — or practically half of all U.S. lumber imports. Canada is distantly adopted by China, Brazil and Mexico as import sources.
The USA additionally exported practically $10 billion of lumber to Canada in 2021, in addition to $6.5 billion to Mexico.
White Home officers mentioned that lumber was an trade through which america ought to be virtually fully self-sufficient based mostly on its sources, however that American lumber mills had been undermined by low cost imports from unhealthy actors, a few of whom have been putative allies.
Peter Navarro, the senior counselor for commerce and manufacturing, mentioned in a name with reporters Friday that “disastrous” timber and lumber insurance policies “drive up building and housing prices and impoverish America by means of massive commerce deficits that outcomes from exporters like Canada, Germany and Brazil dumping lumber” into the U.S. market.
“That stops as we speak with a pair of Trumpian actions designed to each bolster provide of and demand for American timber and lumber,” he mentioned.
If they aren’t offset by matching will increase in provide, lumber tariffs would seemingly push up the worth of imported wooden and lift costs for numerous industries, significantly building. The U.S. investigation will embrace by-product lumber merchandise, like kitchen cupboards.
The investigation can also be more likely to elevate questions and pushback about whether or not lumber imports actually represent a risk to nationwide safety.
The president has additionally initiated nationwide safety investigations into metal, aluminum and copper, however these metals are instantly utilized by the navy to make planes, ships and weaponry. Requested in regards to the nationwide safety justification, the White Home official mentioned that the navy was a significant client of lumber.
Alan Rappeport contributed reporting.
