US President Donald Trump has issued two executive orders concerning the timber industry on 1 March 2025. The first executive order aims to boost domestic production, and the second investigates the impact of imported timber on US security and economic stability. Both orders raise concerns about potential tariffs on Canadian products, the largest lumber exporter to the US.

The orders do not specify any proposed tariff rates.

The executive orders are also accompanied by two fact sheets (fact sheet 1 and fact sheet 2), which warn that the United States’ reliance on foreign lumber threatens economic resilience and military preparedness. The fact sheets cite concerns over foreign subsidies and unfair trade practices, arguing that protecting the US timber industry is crucial for national and economic security.

First executive order

The first executive order directs the Secretary of Commerce to investigate, under section 232 of the Trade Expansion Act of 1962, whether timber, lumber, and related products like paper, furniture, and cabinetry threaten national security. The executive order stated that the United States faces significant vulnerabilities in the wood supply chain due to imported timber, lumber, and their derivative products being dumped onto the United States market.

The investigation will examine foreign subsidies, unfair trade practices, and the potential to increase domestic production.

A final report will recommend measures like tariffs or quotas to protect US producers and is due in 270 days.

Second executive order

The second executive order aims to boost domestic timber production by streamlining permits and reducing regulations. The executive order states that it is vital the government reverses these policies and increases domestic timber production to protect national and economic security. It directs the Departments of the Interior and Agriculture to update policies, collaborate with tribal authorities, and set timber sales targets on federal lands over the next four years.

As outlined in the 19 August 2024 order by the Department of Commerce, the US currently imposes a combined anti-dumping and anti-subsidy duty of 14.5% on Canadian softwood lumber. However, a 3 March 2025 preliminary decision indicates that this rate may rise to 20.07%, once the final results are published.

Previously, on 30 January 2025, Trump signed an executive order imposing substantial tariffs on major trading partners. The order introduced a 25% tariff on imports from Canada and Mexico and a 10% tariff on goods from China. These tariffs officially took effect on 4 March 2025.