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Recently, the Wall Street Journal’s editorial board published a piece titled “
Having already forced Colombia to accept deportees by threatening a 25% tariff, President Donald Trump is readying the same move against Canada and Mexico as soon as Saturday. But this time, the stakes are higher and many economists surveying the possible damage doubt Trump would be comfortable with self-inflicted wounds from the tariffs. Trump has repeatedly insisted that tariffs on Canada and Mexico are about illegal border crossings and the smuggling of fentanyl. But the Republican president is also motivated by the idea that tariffs would force other countries to “respect” the US. …The economics division of the insurance company Nationwide estimated that Trump’s proposed tariffs on Canada and Mexico would increase inflation by as much as 0.5 percentage points and pull down growth by 0.7 percentage points. The analysis noted it did not “account for potential retaliatory tariffs from Canada or Mexico, which could amplify the deleterious impact.”
President Trump said, “We don’t need Canada to make our cars. We don’t need their lumber because we have our own forests,” he said. “We don’t need their oil and gas.” Mr. Trump is wrong on all three, but we’ll focus on lumber. The U.S. doesn’t produce enough lumber to meet domestic demand and thus imports about a third of the softwood used in home construction, mostly from Canada. …Mr. Trump’s tariff threat has created uncertainty for lumber wholesalers and contractors that could delay rebuilding. The U.S. can’t ramp up lumber production in the near term to meet domestic demand, so contractors will have to eat the tariff cost on lumber from Canada or import more from other countries, which would be expensive. If Mr. Trump wants to increase U.S. lumber production, he could open up more federal land for logging. …More tariffs will punish Americans trying to rebuild. [to access the full story a WSJ subscription is required]
PORTLAND, Maine — Tariffs that are central to Trump’s economic policies could destabilize markets for numerous Maine products from lumber to electricity. …Tariffs on products from Canada, which is Maine’s biggest trading partner, would send powerful ripples across the state’s economy. Maine brought in $4.4 billion of goods – fuels, oil, electricity, wood pulp and more – from its neighbor in 2024. Imports from Canada far outpace those from any other trading partner. …Patrick Woodcock, CEO of the Maine State Chamber of Commerce said, “many state businesses see Canada not just as a market to buy and sell items, but a place with mills and processing plants that are “fully integrated in their business plans”. …New tariffs could complicate trade relations between the U.S. and Canada, which have been tested in disputes over lumber for decades, said Patrick Strauch, of the Maine Forest Products Council… but a universal tariff would have the biggest effect on the price of energy. [the access the full story a Portland Press Herald subscription is required]
Framing lumber markets hovered in a holding pattern as traders embraced a wait-and-see approach to a potential 25% tariff on Canadian shipments. The Random Lengths Framing Lumber Composite Price finished the week $1 lower. Western S-P-F buyers moved to the sidelines in late trading, citing minimal immediate needs and uncertainty about the tariffs and near-term prospects. …Price weakness lingered in the Southern Pine market amid sluggish to stagnant sales. Buyers lacked urgency and the potential impact of tariffs on demand for SYP was a widespread topic of conversation. …Traders debated how much of a price spread between Western S-P-F and SYP would need to emerge before end users substituted species on a larger scale. …In Coast markets, Hem-Fir dimension continued to face serious downward pressure from soft Inland prices. Meanwhile, dry Douglas Fir dimension prices stabilized, assisted by a green market that has found its footing.
Lumber futures surged to over $590 per thousand board feet, approaching the two-month high of $600 from January 6th following US President Trump’s decision to implement tariffs on Canada, a major supplier of wood to the US. The tariffs were threatened by the US President shortly after taking office, but conflicting messages from the Presidential administration raised skepticism for investors on whether trade barriers would actually be raised. According to the latest data, Canada supplied around 30% of lumber used in the US last year. The 25% tax on Canadian goods, including wood, add to the already existing anti-dumping duties of 14.5%, raising capacity pressures on domestically produced alternatives. In the meantime, the greater degree of confidence that the Fed will deliver more than one rate cut this year drove benchmark mortgage rates to ease below 7%, giving some respite to construction demand. [END]
The stock market fell on Monday after President Donald Trump slapped tariffs on Canada, Mexico and China, eliciting threats of retaliation and setting the stage for a trade war. The Dow Jones Industrial Average slid about 550 points, or 1.25%, in early trading on Monday. The S&P 500 dropped 1.5%, and the tech-heavy Nasdaq plummeted 2%. Traders demonstrated their jitters with a selloff of U.S. auto companies, which hold deep ties to suppliers in Canada and Mexico. Shares of General Motors plummeted 6%, while Ford saw its stock price plunge 4%. The market rout extended worldwide. Japan’s Nikkei index fell 2.5% on Monday, and the pan-European STOXX 600 dropped about 1%.
Homeownership has long played a starring role in the American dream. …Nearly nine in 10 homeowners (88% / 81% in 2025) in a survey said the true cost of owning a home is more expensive than they’d expected. …Recent, unexpected hurricane-related floods in Western North Carolina and massive fires across Los Angeles County, which both occurred after the survey was conducted, will surely raise costs even more dramatically this year, and not just in the affected regions. This will be due to fierce competition for construction supplies and labor as disaster-stricken areas compete for resources and everyone else looks to maintain and improve their homes. Tariffs, depending on how they’re applied – e.g., Canadian lumber for rebuilding or across-the-board Chinese imports hitting home improvement store shelves – and potential disruption to the construction workforce can also surge homeownership costs.
Looming tariffs could cause the cost of construction materials like lumber and mortar to skyrocket— if they actually happen. President Trump indicated these tariffs could go into effect as soon as Feb. 1. If a 25% tariff is imposed on both of the United State’s bordering neighbors, prices of imported goods will inevitably go up. This could be felt particularly keenly in the residential construction industry, which relies heavily on foreign imports for materials. Combined, nearly 20 percent of the total goods used in residential construction in the United States are imported from Canada and Mexico. …Lumber prices have already risen 17 percent in the last year, with much of that increase coming after tariffs on Canadian lumber were raised to nearly 15 percent in August. According to the NAHB, “Total imports of sawmill and wood products from Canada in 2023 was $5.8 billion.
Lumber prices are 9.6% higher than they were one year ago. …Impact of wood and lumber prices on the cost of a new home: In addition to narrowly defined framing lumber, products such as plywood, OSB, particleboard, fiberboard, shakes and shingles make up a considerable portion of the total 




Kenneth A. Margolis, New York — Who says bipartisanship is dead? President Trump and California Gov. Gavin Newsom have found common ground. Both seem determined to cripple the rebuilding effort in Los Angeles.


…some electric utilities and cooperatives are urging the Senate to seal the deal on the “Fix Our Forests Act” that aims to expedite some federal approvals and reduce wildfire risk overall. The legislation …establishes requirements for managing forests on federal land, including reducing wildfire, expediting certain forest management projects, and implementing forest management projects and activities. …The legislation prohibits courts from immediately halting a project unless they determine that the person suing to stop it “is likely to succeed on the merits” of the case if the lawsuit gets a full hearing. …The National Rural Electric Cooperative Association applauded the bill, arguing it would make it easier for electric cooperatives to reduce the risk of catastrophic wildfires, and called on the Senate to also pass the bill. …Pacific Gas & Electric “supports legislation that would expedite permitting and approvals and reduce barriers to the essential work of keeping powerlines clear of vegetation.”
PORTLAND, Ore. – The United States Forest Service (USFS) is currently taking comments on its proposed changes to the Northwest Forest Plan (NWFP) through March 17. The NWFP dates back to the mid-1990s, serving as the blueprint for conserving forests and wildlife habitat along the West Coast. It covers over 24 million acres managed by the Forest Service and other federally managed lands, spanning from California and up through Washington. The proposed amendments intend to provide an updated management framework that incorporates best available scientific information and current conditions in order to better address the social, economic, and ecological changes experienced over the last 30 years. The proposed changes outlined in a Draft Environmental Impact Statement focus on themes of fire resilience, economic benefits, and forest stewardship, with Tribal inclusion and adapting to changing conditions interwoven throughout these themes.
BATON ROUGE, La. — Louisiana produces 70% more forests than it is cutting down. The Forestry Association is trying to encourage industry to utilize those resources, including renewable fuel makers. The state has been working on reforestation closely since the 1940s when the issue of losing critical timber came to a head. With paper mills closing up shop over the years, Louisiana Forestry Association Executive Director Buck Vandersteen said the state is nearing a forest level that will be hard to manage against disease and wildfires. Vandersteen talked about four mills that are in the works of opening in some of the northern parishes in the state. Those companies harvest the larger trees for hardwood. Smaller brush and trees offer an opening for the biofuel industry to thrive. …With the Trump administration … undoing the push towards renewable energy, there is a question of how this will impact the industry in Louisiana.

Georgia is the nation’s top forestry state, grappling with overproduction and the aftermath of severe storms which damaged timber supplies. Industry leaders and policymakers are turning to sustainable aviation fuel to boost the industry, create jobs and reduce carbon emissions. Sen. Larry Walker, R-Perry… said the growing demand for sustainable aviation fuel from companies like Delta Air Lines highlights its potential. However, he emphasized expanding production requires strategic federal policies and research to ensure long-term growth. “To invest in a facility that manufactures SAF, it’s a huge investment. It’s a long-term proposition,” Walker stressed. “We need some certainty out of Washington what the public policy is going to be, what the incentives to create this industry are.” …Walker added state lawmakers plan to introduce bills during the 2025 legislative session to support forestry innovation and expand sustainable aviation fuel production in the state.
