{"id":88696,"date":"2025-03-25T08:13:47","date_gmt":"2025-03-25T08:13:47","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/u-s-tariffs-could-accelerate-canadian-lumber-producers-move-to-the-south\/"},"modified":"2025-09-18T17:30:09","modified_gmt":"2025-09-18T17:30:09","slug":"u-s-tariffs-could-accelerate-canadian-lumber-producers-move-to-the-south","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/u-s-tariffs-could-accelerate-canadian-lumber-producers-move-to-the-south\/","title":{"rendered":"U.S. tariffs could accelerate Canadian lumber producers\u2019 move to the South"},"content":{"rendered":"

<\/span> U.S. President Donald Trump\u2019s tariff threat may prompt more Canadian lumber producers to move operations to the U.S. South while also accelerating efforts to tap new markets, according to industry experts.<\/p>\n

The tariffs are the latest chapter in a longstanding dispute over softwood lumber, a critical material used in construction, furniture, and paper production, between the U.S. and Canada.<\/p>\n

U.S. tariffs on Canadian lumber could reach up to 40%, combining the current duties of 14.54% with Trump\u2019s proposed 25% tariffs. While Trump has paused tariffs on goods compliant with the United States-Mexico-Canada Agreement until April 2, the pressure remains.<\/p>\n

Washington claims that Canadian lumber products are subsidized and sold at unfairly low prices in the U.S. Canada has contested these duties successfully through multilateral trade agreements.<\/p>\n

Canada supplies roughly a quarter of U.S. lumber, but over the past decade, many Canadian mills have relocated to the U.S. South. The region offers cheaper timber and access to private lands with less stringent harvesting regulations compared to Crown lands.<\/p>\n

The disparity in log costs and timber availability is a major factor driving this shift, as Canadian mills seek to avoid the impact of tariffs and access more cost-effective resources. Several Canadian mills have also moved operations to the U.S. South due to these economic advantages.<\/p>\n

For example, Canfor has been closing operations in British Columbia, citing challenges accessing affordable fiber, market weakness, and U.S. tariffs. Currently, about 70% of Canfor\u2019s lumber operations are based outside Canada, while Weyerhaeuser\u2019s U.S. operations account for 80% of its lumber manufacturing.<\/p>\n

\"In 2004, there were only two Canadian-owned sawmills in the U.S. South. Today, there are over 50,\" said Kyle Little, COO at Sherwood Lumber, a New York-based supplier to U.S. lumber yards and manufacturers.<\/p>\n

Canadian companies now account for over a third of the U.S. South\u2019s lumber production capacity, which surpassed Canada\u2019s in 2022 and is expected to continue expanding in the coming years.<\/p>\n

The decline in British Columbia's production, which has halved since 2017, has further reduced Canada\u2019s market share.<\/p>\n

\u201cProducers have increasingly chosen to establish mills in the U.S. South due to challenges in Canada,\u201d said Morningstar analyst Spencer Liberman. \"Tariffs could accelerate this trend.\"<\/p>\n

Exploring alternative markets<\/strong><\/p>\n

The British Columbia Lumber Trade Council\u2019s President, Kurt Niquidet, suggested that the province may direct more lumber supplies to the Asia Pacific region to mitigate the impact of tariffs. However, this is not without its challenges, as Canadian sawmills are primarily designed to serve the U.S. housing market.<\/p>\n

\"Our alternative markets are already at full capacity,\" said Sean Steede, vice president of sales and marketing at Vancouver-based Interex Forest Products.<\/p>\n

The strain on the industry<\/strong><\/p>\n

The shift could create significant disruptions for both businesses and their customers.<\/p>\n

\u201cEven with modest growth, it would likely take around a decade to replace Canadian lumber supplies in the U.S.,\u201d analysts noted, highlighting the financial strain the industry faces with multiple ongoing challenges.<\/p>\n

Lumber futures reached a two-and-a-half-year high above $650 per thousand board feet in March. Prices may surge to $765 within months following the tariff imposition, potentially adding over $10,000 to the cost of a medium-sized home, warned George Carrillo, CEO of the Hispanic Construction Council.<\/p>","protected":false},"excerpt":{"rendered":"

U.S. President Donald Trump\u2019s tariff threat may prompt more Canadian lumber producers to move operations to the U.S. South while also accelerating efforts to tap new markets, according to industry experts. 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