The U.S. Initiates an Investigation into Timber and Lumber Imports

The investigation is part of a broader U.S. strategy to ensure that industries critical to infrastructure and national security remain competitive and self-sufficient.

President Donald Trump has issued an executive order directing the U.S. Department of Commerce to investigate whether timber and lumber imports threaten national security.

This decision is based on growing concerns about America’s dependence on foreign sources for essential building materials and the potential risks associated with this reliance. 

The review falls under Section 232 of the Trade Expansion Act of 1962. It is the same legislation that Trump recently used to impose tariffs on steel and aluminum imports.

Trump also ordered new steps to increase the domestic supply of lumber within 90 days.

This includes simplifying the permitting process for timber harvesting on public lands and improving the recovery of salvaged trees from forests and waterways.

Why is this investigation happening?

The wood products industry, which includes timber, lumber, and their byproducts—such as paper, furniture, and cabinetry—is a critical component of U.S. manufacturing.

Despite having the natural resources and production capacity to meet 95% of its consumption needs, the U.S. has been a net importer of softwood lumber since 2016.

Wood imports currently play a significant role in U.S. construction and infrastructure projects, including civilian and military developments, both of which require a stable and reliable supply.

The U.S. military alone spends over $10 billion annually on construction, much of which depends on these materials.

The investigation will evaluate whether foreign suppliers benefit from unfair advantages, such as government subsidies, that allow them to sell their lumber to the U.S. at low prices.

If the investigation finds that these imports are undermining the domestic industry, the administration may take corrective action.

What the investigation will cover

The U.S. Department of Commerce will work with the Department of Defense and other agencies to assess the national security risks associated with timber and lumber imports.

The investigation will focus on several factors, including:

• The demand for timber and lumber in the U.S. and how it is expected to change over time.
• Whether domestic timber and lumber production can meet demand.
• How major exporting countries contribute to U.S. timber and lumber consumption.
• The impact of foreign government support and any trade practices that may affect the competitiveness of the U.S. wood product industries.
• Whether increasing domestic timber and lumber capacity could reduce dependence on imports.
• How existing trade policies affect domestic timber and lumber production and whether additional measures, including tariffs or quotas, are needed to protect national security.

The Department of Commerce has 270 days to complete the investigation and present its findings to the President.

The potential impact on U.S. trade policies

Depending on the results, potential policy actions may include the following:

• Introducing tariffs on imports to encourage domestic production.
• Creating import quotas to limit the amount of timber and lumber.
• Supporting U.S. timber producers through policies that help expand domestic production and simplify regulatory processes.

What happens next?

If you import wood products into the U.S., we recommend assessing how potential restrictions or incentives might affect your operations in advance. This will give you time to plan for supply chain changes and mitigate any associated risks.

At Cole International, we’re here to support you throughout this process. Our customs brokerage and trade consulting services are designed to help you navigate trade policy changes, stay compliant, and ensure business continuity.

Please reach out to one of our trade professionals to discuss how we can help you.