On February 20, President Donald Trump announced a 10% temporary import duty under Section 122 of the Trade Act of 1974, shortly after the US Supreme Court struck down his tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Spotlights
Vietnam Industry Overview: Opportunities for Softwood
Against a backdrop of evolving global trade policies and growing demand for sustainable timber raw materials, Vietnam has established itself as a major player in the global wood furniture manufacturing industry, over the past two decades.
New Tariffs Will Have Massive Effects on US Economy; North American Wood Products Sector Will See Few Direct Effects
The trade restrictions announced on the Trump Administration’s “Liberation Day” mark a sea change in US trade policy. Here are a few of our initial thoughts.
Tariffs Would be a Drop in the Housing Affordability Bucket
The Trump Administration’s threat to slap a 25% tariff on most imports from Canada and Mexico starting on April 2nd will have many unhealthy effects on all three of North America’s economies. If enacted, these tariffs would increase costs and prices and lower total employment, productivity, and real wages across all three economies. However, they will not have a material effect on home affordability in the US.
A Home Design Catalog Takes Aim at a National Housing Shortage
In an effort to speed up much-needed homebuilding, Canada aims to bring back a tool that was last used in the post-war housing crisis.
Canada’s Caribou Conservation Goals and Woodland Management
One of the world’s biggest softwood lumber producing countries is in the midst of a major conservation effort that could place some Canadian fiber off limits to harvesters. Canada is taking steps to preserve boreal caribou habitat through provincial conservation plans.
US Demographics and House Inventories Fuel Home Size Trend
When the pandemic enabled many city dwellers to work remotely in 2020, many people bought new homes in more affordable and sprawling neighborhoods. By 2021, the average size of a newly constructed single-family house in the US expanded, bucking the downtrend in place since dropping from the record-high in 2015.
Canada’s Record Wildfires had Limited Impact on Lumber Supply
The 2023 wildfire season in Canada was vast and voracious. The amount of forested acres that burned this year was by far the largest ever recorded at 45.7 million acres. That represents a total land mass that is bigger than the state of Missouri that went up in smoke this year alone.
U.S. Lumber Imports from Europe Hold Strong
US imports of lumber from Europe have risen this year so far, defying many analysts’ expectations for overseas supplies to decrease due to falling demand, weaker prices and the Russia-Ukraine conflict.
Frame of Reference for Revamped Lumber Futures
Futures markets involve speculation about the future, spot markets deal with the present. They often differ from each other, but when the future finally arrives and the contracts near expiration, futures must converge with spot to function as a practical hedging tool. The legacy contract has done that.