Today, the Trump Administration has issued a proclamation citing the critical importance and essential nature of timber and wood products to the United States and its national economy, security and for critical infrastructure - while applying a new 10 per cent tariff on imported softwood timber and a 25 per cent tariff on imported upholstered wooden furniture and cabinets.
The proclamation which follows a report from the United States' Commerce Secretary on the impact of imported wood products, states:
…present quantities and circumstances of wood product imports are weakening our economy, resulting in the persistent threats of closures of wood mills and disruptions of wood product supply chains, among other things, and diminishing the utilization of production capacity of our domestic wood industry. Because of the state of the United States wood industry, the United States may be unable to meet demands for wood products that are crucial to the national defense and critical infrastructure.
…wood products serve as essential inputs across multiple sectors, supporting national defense, critical infrastructure, economic stability, and industrial resilience in the United States.
Australian Forest Products Association (AFPA) Chief Executive Officer, Diana Hallam said, "It's important that the federal and state governments here recognise that our forestry and forest products sector is just as important to Australia, as the American industry is to the United States. And, the threats the Americans face to their industry from imports are akin to what our industry faces from imports."
For example, over the past 12-months, new home builds have been improving, yet domestic timber sales are not. Imported product is a big factor in this impact on local industry.
"While we aren't calling for tariff increases on imported timber and wood products, we do believe Australian consumers should be better informed about what they're purchasing. That's why we advocated for country of origin labelling ahead of the 2025 federal election along with other measures to strengthen local industry," Diana Hallam said.
"We are also working with the Australian Government's International Trade Remedies Forum (ITRF) and will continue to as the impact of these new US tariffs is felt across the globe.
"Australia imports around a quarter its timber needs for construction and this can flex up to 40 per cent during periods of high demand. Much of that timber comes from Baltic countries and I'm sure many Australians would be stunned to know that there are houses being built here today using timber that is shipped halfway around the world from countries such as Latvia, Lithuania and Estonia. Especially when we produce plenty of our own product here in Australia.
"The Trump Administration's proclamation for the United States' own timber sector is a timely reminder of the importance that our own local forestry and timber industry has for Australia's sovereign capability," Diana Hallam concluded.
