Kevin Mason
The US tariff regime is far from over despite a US Supreme Court ruling striking down last year’s tariffs authorized by President Trump under the International Emergency Economic Powers Act (IEEPA). Although the court noted in its ruling that the president overstepped his authority in applying reciprocal tariffs on virtually all trading partners, it did leave the door open for other means of tariff application—and the US Administration has wasted no time in charging through that door, turning to Section 122 of the Trade Act of 1974 to impose new global tariffs of 10% (likely moving to 15%). Tariffs under Section 122 expire after 150 days without congressional approval, but we assume other options will be put in place before expiry (Section 232, 301 or some other creative mechanism).
With respect to the forest products industry, cessation of IEEPA tariffs and application of these new Section 122 tariffs have no impact on existing lumber duties (35% remains intact), nor for any existing tariffs under Section 232 (at 10%) or goods currently compliant under USMCA (such goods remain tariff-free under Section 122). Although USMCA-compliant goods are safe from tariffs for now, with that trade deal being reviewed this summer the tariff-free flow of goods among the US, Mexico and Canada could be upended. Since almost all newsprint supply comes from Canada (see page 19), that fear is ostensibly already causing U.S. buyers to accelerate purchases. Our table details what we know at the moment about the new tariff regime (Section 122 at 10% but probably moving to 15%). Brazil and China appear to be winners in these latest moves, but, with other mechanisms available to Trump, we don’t think these recent tariff reductions are going to lead to any dramatic increase in imports from these countries (uncertainty seems to be part of the goal under Trump’s methods).
WASHINGTON — Some two dozen states challenged U.S. President Trump’s new global tariffs on Thursday, filing a lawsuit over import taxes he imposed after a stinging loss at the Supreme Court. The Democratic attorneys general and governors in the lawsuit argue that Trump is overstepping his power with planned 15% tariffs on much of the world. …Section 122, which has never been invoked, allows the president to impose tariffs of up to 15%. They are limited to five months unless extended by Congress. The lawsuit is led by attorneys general from Oregon, Arizona, California and New York. …The new suit argues that Trump can’t pivot to Section 122 because it was intended to be used only in specific, limited circumstances — not for sweeping import taxes. It also contends the tariffs will drive up costs for states, businesses and consumers.
Fiber and glass are among the packaging substrates hardest hit by February closure and layoff announcements. Here are the North American facilities that have announced downsizing efforts:
Portland based Hampton Lumber, one of the nation’s largest lumber manufacturers, confirmed on Thursday that it has parted ways with CEO Randy Schillinger. Steve Zika, vice chair of the Hampton board and its chief executive for 20 years before Schillinger was named to the position in June 2023 has served in an interim capacity since early December, the company said in an emailed statement. [A Portland Business Journal subscription is required to access this full story]
NEOPIT, Wisconsin — A Neopit wood mill is closed Tuesday after it experienced an early morning fire. Menominee Tribal Enterprises says it lost its stacker building and associated equipment. Some lumber inventory was damaged in the fire as well. All employees are safe and no injuries were reported. Production operations are closed for the day as the organization assesses the damage and begins determining the next steps for recovery and continuity of operations. The Menominee Tribal Enterprises store and main office remain open and are operating during regular business hours.
VANCOUVER, B.C. – Canfor Corporation reported its fourth quarter of 2025 results. For the fourth quarter of 2025, the Company reported an operating loss of $415.9 million and a net loss of $390.5 million. Highlights include: An asset write-down and impairment charge of approximately $320.4 million… of which $213.9 million relates to the Company’s lumber segment and $106.5 million relates to the pulp and paper segment; Lumber production was up 2% from the previous quarter, driven primarily by the full quarter contribution from the recently acquired Hedin sawmills in Europe. …Canfor’s CEO, Susan Yurkovich, said, “Our lumber business continued to face significant headwinds in the fourth quarter, with ongoing market weakness combined with elevated duty and tariff costs weighing on our results.” …Yurkovich added, “Our pulp segment also remained under significant pressure this quarter, as global economic uncertainty, weak market demand and limited access to economic fibre in British Columbia continued to weigh on performance.”
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WASHINGTON — American employers unexpectedly cut 92,000 jobs last month, a sign that the labor market remains under strain. The unemployment rate blipped up to 4.4%. The 
Mortgage rates continued to decline in February, dipping below 6% in the last week of February. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.05% last month, 5 basis points (bps) lower than January. Meanwhile, the average 15-year rate declined only a basis point to 5.43%. Compared to a year ago, the 30-year and 15-year rates are lower by 79 bps and 60 bps, respectively. The 10-year Treasury yield, a key benchmark for long-term borrowing, held relatively steady for most of February with an average 4.18% – a marginal decrease of 2 bps from the previous month. However, yields fell significantly in the final week of February. …Following the recent escalation of conflict in the Middle East, the 10-year Treasury yield has shown signs of reversing course. Investors are closely monitoring how protracted the conflict may become and its potential implications for global energy markets. If oil prices rise significantly, inflation pressures could intensify, potentially pushing Treasury yields higher.
If enacted, the new legislation would aim to streamline tariff exclusions for goods used in home construction, help stabilize material pricing, and support efforts to expand housing supply nationwide U.S. Sens. Jacky Rosen (D‑NV) and Chris Coons (D‑DE) have introduced legislation aimed at easing construction costs and addressing America’s housing affordability crisis by excluding key homebuilding materials from tariffs imposed under the Trump administration. The Housing Tariff Exclusion Act would create a process to automatically exempt many building materials from current and future tariffs and allow importers to apply for exemptions on other essential construction inputs. The bill comes amid ongoing concerns that tariffs on imported materials such as lumber, steel, and other construction inputs have driven up costs for builders, contributing to higher home prices and exacerbating supply shortages. …The bill has garnered support from industry groups including the NAHB.
US equities tumbled on Tuesday, undoing a Monday equity comeback, as oil prices spiked again and traders began to worry the U.S.-Iran conflict could drag on longer than anticipated. The Dow Jones Industrial Average lost 1,238 points, or 2.5%. If that holds, it would mark the blue-chip index’s first 1,000-point decline since April 10, 2025. The S&P 500 slipped 2.2%, while the Nasdaq Composite was down 2.3%. Brent crude oil, the international benchmark, topped $84 a barrel, up 8% Tuesday following a 6% spike Monday. WTI crude jumped 8% to above $77 a barrel after a 6% jump as well on Monday. Iranian Revolutionary Guard commander said the Strait of Hormuz — the world’s most vital transit route for crude oil — is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media.
Real estate professionals active in the Los Angeles market are bracing themselves for another wave of tariff-induced uncertainty following the US Supreme Court’s ruling. …Despite the Feb. 20 ruling, President Donald Trump has been adamant that he will find other avenues to impose his tariffs. Trump’s tariff policies have already caused upheaval for local businesses, and now the country’s heightened situation with tariffs will further disrupt L.A.’s real estate market, according to experts across development, manufacturing and finance. “This is a very shifting landscape for American companies,” said Ken Calligar, founder of RSG 3•D. …Garret Weyand, at Cedar Street Partners, said, “If costs are too high because of these tariffs, then projects don’t get built.” Banks will likely make borrowers increase the amount of equity so that the bank is covered in the event tariffs and inflation raise project costs.
As retired Forest Service leaders who had the privilege of managing millions of acres of national forests across the West, we understand the importance of stewarding these lands for the benefit of local communities and the nation. Full repeal of the Roadless Area Conservation Rule would undermine trust in agency managers, hinder collaborative agreements, adversely affect resources the public cares about and ultimately restrict efficient land management. Repealing the rule is favored by many of those who opposed it from the beginning or perceive that it undermines effective forest management. …after over two decades of implementation and learning, forest managers and partners know there could be thoughtful improvements to the Roadless Rule. …Rather than seeking to repeal the rule, the Forest Service should meaningfully engage stakeholders to update the rule and improve implementation based on what has been learned over the past 25 years. This will allow future land managers to benefit local communities and the nation.
OREGON — The Pacific Northwest isn’t known as maple syrup country, but a burgeoning syrup industry in Oregon and Washington is trying to change that perception, one gallon of sap at a time. The Northwest’s more temperate climate and more watery maple sap make it harder to make syrup at a commercial scale. Producers can invest in technology, much of it developed in Canada, to improve their harvests, but that means steeper initial investments for farmers, and it doesn’t solve the fact that making bigleaf maple syrup still requires long, grueling hours that producers say can be a barrier to entry. Because of that, the Northwest maple syrup industry has required more effort to get off the ground. But those passionate about local syrup say the delicious, boutique product is well worth the trouble.
The Trump administration is turning to rarely used laws to circumvent environmental restrictions and expand logging in certain Pacific Northwest forests, legal analysts and advocates say. In plans announced in February to expand logging in Alaska’s Tongass National Forest and on federal land in western Oregon … administration is using the 1990 Tongass Timber Reform Act to prioritize logging in the largest national forest in the US, and BLM is citing a 1937 law, the Oregon and California Revested Railroad Lands Act, to do so on its land in western Oregon. Both apply only to specific forests and envision logging as a primary use of those lands. The agencies are using federal laws that “privilege timber harvesting and will use that argument to short circuit environmental protections,” especially at the expense of endangered species, said Andrew Mergen, a Harvard Law School professor who was previously a lawyer at the Justice Department’s Environment & Natural Resources Division.
Across the Front Range, century-old, iconic ponderosa pines span thousands of acres …But over the past three years, that landscape has noticeably shifted. More hillsides are now marked by … signs of a growing pine beetle outbreak, according to the state’s Forest Service lead entomologist, Dan West. “The ability for these small, little insects to work in concert to all attack one tree all at the same time and to overcome the tree’s defenses that have been there for a century is truly staggering,” West said. It only took a few years for these tiny insects, no bigger than a grain of rice, to explode across the Front Range and impact more than 7,000 acres of forested land. Now, Gov. Jared Polis has launched an aggressive response. …Whether the state’s new task force can slow the outbreak remains to be seen. 
OREGON — A historic state-tribal collaboration in Oregon has stalled after a charitable foundation pulled out of a potential land deal. The Oregon Department of Fish and Wildlife was preparing to purchase 11,438 acres of private timberland using a federal grant. The area is about 10 miles southwest of La Grande in the Blue Mountains. The agency planned to manage the land alongside the Confederated Tribes of the Umatilla Indian Reservation — the first such collaboration in Oregon. But the landowner, the Harry A. Merlo Foundation, has withdrawn from the deal “for undisclosed reasons,” according to the Oregon Department of Fish and Wildlife. The state wildlife department and tribes had secured $22 million in federal funding to acquire and co-manage the land. …The plan was to restore this swath of forests and meadows for elk and salmon habitat.
MONTANA — Three national forests east of Missoula are proposing a plan to require continuous logging across almost a million acres of southwest Montana for at least the next decade. On Monday, the U.S. Forest Service released a draft plan for a Tri-Forest Sustained-Yield Unit, which would direct logging to occur on more than 925,000 acres across the Beaverhead-Deerlodge, Helena-Lewis and Clark and Custer Gallatin national forests. The plan’s stated purpose is to “to support local economies and the timber industry.” Logging is predicted to ramp up to produce 35 million board-feet of lumber annually by the end of 10 years, according to the plan. … The plan says logging won’t occur in wilderness areas, recommended wilderness or wilderness study areas. …But some regional public land advocates are questioning the plan at a time when the Trump administration has pushed a number of other initiatives that favor the timber industry and reduce public comment.
In November 2025, the Department of Environmental Protection (DEP) approved a 