Derek Nighbor
With over 200,000 direct jobs at stake, sector calls on the government of Canada to bring the same urgency to lumber as it has to steel, aluminum, and energy.
Canada’s forest sector is disappointed that yesterday’s discussions in Washington concluded without relief for 232-affected sectors, including lumber, as the long-standing Softwood Lumber dispute and recently applied tariffs on Canada’s wood manufacturing industry continue to put operations and jobs at risk across the country. While we recognize that the talks were described as substantive and appreciate that these negotiations are complex, after eight years of escalating duties on softwood lumber, the lack of tangible progress for forest sector workers and communities is deeply concerning. With more than 200,000 direct jobs and hundreds of towns and cities across Canada depending on a vibrant forest sector, lumber and forest products must be treated as a greater priority in Canada–U.S. trade discussions.
Our industry continues to face unjustified duties and tariffs that harm forestry workers here at home and raise costs for American families building and renovating their homes. We urge the Government of Canada to ensure that lumber and forest products are clearly on the agenda as talks continue this week. “We simply want to see more urgency, and frankly, we were left wanting more in the post-meeting reports coming out of yesterday’s discussions,” said Derek Nighbor, President and CEO of the Forest Products Association of Canada.
The US imports about 40% of the softwood lumber the nation uses each year, more than 80% of that from Canada. President Trump says that the US has the capacity to meet 95% of softwood lumber demand and directed federal officials to update policies and regulatory guidelines to expand domestic timber harvesting and curb the arrival of foreign lumber. …As researchers studying the forestry sector and international trade, we recognize that the US has ample forest resources. But replacing imports with domestic lumber isn’t as simple as it sounds. There are differences in tree species and quality, and U.S. lumber often comes at a higher cost, even with tariffs on imports. Challenges like limited labor and manufacturing capacity require long-term investments, which temporary tariffs and uncertain trade policies often fail to encourage. In addition, the amount of lumber imported tends to mirror the boom-and-bust cycles of housing construction, a dynamic that tariffs alone are unlikely to change.
President Trump ushered in new tariffs on imported furniture, kitchen cabinets and lumber on Tuesday, adding a fresh round of levies as he once again threatened to expand his trade war with China. Tariffs ranging from 10% to 50% on foreign wood products and furniture snapped into effect just after midnight. The tariffs are meant to encourage more domestic logging and furniture manufacturing. But critics say that the levies will raise prices for American consumers and could slow industries including home building that rely on materials from abroad. …Critics have called it a stretch to issue the furniture and lumber tariffs under the national-security-related law. …Some American manufacturers lobbied for the tariffs. …Some economists expect the higher price of lumber, along with home furnishings, will slow the pace of home building. That could set back the Trump administration’s goals of improving a weak housing market. [to assess the full story a NY Times subscription is required]
The US is now collecting tariffs on imported timber, lumber, kitchen cabinets, bathroom vanities and upholstered furniture, duties that threaten to raise the cost of renovations and deter new home purchases. …Trump described his wood and furniture tariffs as helping to “strengthen supply chains… and increase domestic capacity utilization for wood products.” Yet 
President Trump has warned of disaster if the Supreme Court overturns his signature tariffs. For starters, it would unleash a bureaucratic nightmare involving reams of refund paper checks. Should the court uphold a US Court of Appeals ruling that Trump’s country-based tariffs are illegal, the government could owe the bulk of the $165 billion in duties collected so far this fiscal year back to companies that paid them. But they won’t have an easy time getting their money back; refunds are typically issued slowly and while the administration could streamline the process, experts fear that’s unlikely. …That means Trump likely won’t part with the funds easily if the tariffs are struck down, and the administration is expected to move quickly to reimpose levies using other legal authorities if that happens. The Supreme Court is expected to hear arguments in November in the case.
President Trump’s new tariffs on imported lumber and wooden fixtures have taken effect, potentially raising the cost of home construction and renovations. …“These new tariffs will create additional headwinds for an already challenged housing market by further raising construction and renovation costs,” says NAHB Chairman Buddy Hughes. …According to an NAHB analysis, U.S. sawmills are operating at just 64% of their potential capacity, a figure that has dropped steadily since 2017. “It will take years until domestic lumber production ramps up to meet the needs of our citizens,” the trade group says”. …Framing costs, including the roof, averaged about $49,763 for new single-family homes last year, accounting for about 12% of the total cost of a new build, according to an NAHB breakdown. Cabinets and countertops cost $19,056 on average, accounting for 4.5% of the total, the analysis found. …Builder profit margins have already been shrinking, and many companies have pulled back on new construction.
The Trump administration and its advocates have long sold tariffs as a smart and necessary way to reindustrialize the country, bolster national security, and revitalize the economy more broadly. In practice, however, they put tariffs on cabinets and sofas for “national security” reasons, exempt others because of potential political blowback, and do all sorts of other things that likely undermine the economic and security objectives the administration says its tariffs are achieving. And they do it all with little regard for the facts, economics, or law. Throw in some foolish nostalgia (contra the president, furniture manufacturing is today a tiny share of North Carolina’s economy and workforce), and the furniture tariffs make for an almost-perfect example of the canyon between protectionist rhetoric and US tariff reality. The only thing preventing perfection is that there isn’t a “national emergency” or fake “fiscal crisis” attached.
OLYMPIA, Washington — Washington state is investing $700,000 to support its apple and timber industries, creating at least 270 new jobs, Governor Bob Ferguson announced Thursday. The funding comes from the state’s Economic Development Strategic Reserve Fund, which uses unclaimed lottery prize money to help attract and retain jobs. The money will be split across three projects: Yakima County: $250,000 to prepare a site in Sunnyside for a new apple products processing plant. Forks: $200,000 for infrastructure upgrades at the Forks Industrial Park, where Riverside Forest Products USA plans a sawmill. Spokane Valley: $250,000 to expand a manufacturing facility for Mercer Mass Timber. Governor Ferguson said the investments, combined with private funding, will strengthen the state’s economy. Commerce Director Joe Nguyễn added the funds will help meet infrastructure needs, support local businesses, and create sustainable jobs.
The Mississippi Department of Environmental Quality permit board on Wednesday reversed a decision from earlier this year and granted wood pellet manufacturer Drax a permit that allows it to release more emissions from a facility in Gloster. The board held a two-day evidentiary hearing after denying the company the permit in April. The permit falls under Title V of the Clean Air Act and allows Drax’s facility Amite BioEnergy, to become a “major source” of Hazardous Air Pollutants, or HAPs. The board voted unanimously in favor of granting the permit said Kim Turner. Evidence from the hearing “sufficiently addressed” concerns the board previously had. MDEQ has found the facility in violation multiple times since Drax opened the Amite County plant in 2016. …Drax applied for the permit in order to better reflect its production capacity. Since violating the current permit, Amite BioEnergy has had to decrease its pellet output.
Lumber futures have risen about 19% from a low hit in early September, driven by the production cuts, hopes that declining interest rates will revive the housing market and Trump’s import tax. The 10% levy is on top of steep duties on Canadian lumber, which are adjusted annually in a heavily litigated process that is the result of a decades-long trade dispute. Those antidumping and countervailing duties rose in August to about 35% for most Canadian producers, up from roughly 15%. Canada’s sawmills are by far the largest source of softwood lumber from beyond U.S. borders, fulfilling about 24% of domestic consumption last year. Other significant importers of softwood lumber, the type used to frame houses, include Brazil and European countries such as Germany and Sweden. Homebuilders argue that import taxes will raise construction costs. U.S. lumber producers and timberland owners, however, urged Trump to enact a tariff.
Lumber futures rose past $610 per thousand board feet in mid-October, approaching monthly highs as markets priced in tighter near-term supply and looming trade restrictions. Under newly announced US Section 232 tariffs that take effect on October 14th, imported softwood lumber will face a 10% duty and finished wood goods such as cabinets and furniture will face higher levies, prompting importers to front-load purchases and draw down inventories. Domestic output is also constrained as sawmills run cautiously after years of underinvestment, logging curbs in sensitive regions and slow capacity restarts have limited production. The cost and delay of switching suppliers is material given that Canadian lumber, which supplies much of US demand, already carries elevated antidumping and countervailing duties, intensifying the supply squeeze.
In August, single-family permit activity softened, reflecting caution among developers amid persistent economic headwinds. This trend has been consistent for eight continuous months. On the multifamily front, permitting also cooled in August but remains in the positive territory. While single-family continues to bear the brunt of affordability headwinds, the multifamily space is showing tentative signs of rebalancing. Over the first eight months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 637,096. On a year-over-year (YoY) basis, this is a decline of 7.1% over the August 2024 level of 685,923. For multifamily, the total number of permits issued nationwide reached 330,617. This is 1.4% higher compared to the August 2024 level of 326,080. HBGI analysis indicates that this growth for multifamily development has been concentrated in lower density areas and among smaller builders.
In 2024, 17.5% of all new single-family homes started were custom homes. This share decreased from 18.8% in 2023 and from 20.4% in 2022, according to data tabulated from the Census Bureau’s Survey of Construction (SOC). The custom home market consists of contractor-built and owner-built homes—homes built for owner occupancy on the owner’s land, with either the owner or a builder acting as a general contractor. The alternatives are homes built-for-sale (on the builder’s land, often in subdivisions, with the intention of selling the house and land in one transaction) and homes built-for-rent. In 2024, 73.1% of the single-family homes started were built-for-sale and 9.3% were built-for-rent. At a 17.5% share, the number of custom homes started in 2024 was 176,932, falling from 177,850 in 2023.
In 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018. …Vinyl was followed closely by stucco at 25%, and by fiber cement siding (such as Hardiplank or Hardiboard) at 23%. Each of these materials holds about a quarter of the market, with another 16% held by brick or brick veneer. Far smaller shares of single-family homes had wood or wood products (6%), stone, rock or other stone materials (1%), other (1%), or cement blocks (.2%) as the principal exterior wall material. …The strongest trend has been the growing popularity in fiber cement siding. The share of exterior siding material for fiber cement siding has increased by 5.5 percentage points in the last ten years…. Also notable is the decline of brick siding, from almost a quarter of homes in 2012, to just 16% in 2024.){kind=logo}
In the third quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024. Overall, remodelers remain optimistic about the market, although slightly less optimistic than they were at this time last year. The most significant headwinds they are facing include high material and labor costs, as well as economic and political uncertainty making some of their potential customers cautious about moving forward with remodeling projects. The small quarter-over-quarter improvement is consistent with flat construction spending trends and the current wait-and-see demand environment.
While sustainable solutions are facing drastic funding cuts, mass timber as a sustainable construction material is steadily gaining traction across the US. Construction using mass timber began in 2015 in the US, and since then the number of projects has grown about 20% annually. Today, over 2,500 mass timber projects are built or in progress in the US, including corporate offices for companies such as Google, Microsoft and Under Armour. …“We have lots of tech firms and big companies that say, ‘Hey, we’re battling it out for workers. We want the best space possible,’” said Bill Parsons, COO at WoodWorks. …Legislation that promotes and programs that fund mass timber, such as the Mass Timber Federal Buildings Act and the Wood Innovations Grant Program from the USDA, are still progressing. …Studies have shown that living or working in a mass timber building improves occupants’ mental health and well-being, even lowering their blood pressure and heart rates.
US civil society groups are urging the European Commission to resist Washington’s pressure to delay the EU’s deforestation regulation (EUDR) or tweak the rules to grant the country preferential treatment, according to a letter seen by Euractiv. The missive, sent this morning to Commission President Ursula von der Leyen and the Commissioners responsible for green rules, the economy and trade, warns against any backtracking. “We are particularly concerned by the Commission’s apparent willingness to offer the U.S. special treatment under the EUDR as part of ongoing EU-U.S. trade negotiations,” the letter reads. The organisations refer to the joint statement issued by Brussels and Washington in September, which labels the US as posing “negligible risk to global deforestation.” Rick Jacobsen, senior manager for commodities policy at the US NGO Environmental Investigation Agency, told Euractiv that US interests have “ramped up the pressure campaign” to weaken the law before it even comes into force.
Western Colorado — Communities across the Western Slope need scientifically sound, effective action that actually helps protect our forests and communities. That’s why so many of us are paying attention to the Fix Our Forests Act, now moving through Congress. …The Act leans heavily on boosting logging, and yes, thinning trees in the right places can improve forest health. The problem is that an agenda driven by timber harvesting often causes companies to cut the largest-diameter trees to meet timber quotas set by Washington, D.C. Instead, restoration forestry is the science-backed solution that we really need. …There are real solutions to today’s forestry challenges. …We have the tools – they just need more funding and staff to do the job. …I urge our senators to do all they can to improve the bill before final passage, keeping the public at the table, as they the most to lose if we don’t get this right.
Given market sentiment and operating rates, in addition to recent mill closures and curtailments, how has demand for wood fiber changed recently and over the past 10 years? …Total capacity of the wood-using U.S. pulp and paper sector declined 18% in the past 10 years. This decline is specific to wood-using mills, excluding facilities that rely exclusively on recycled fiber, but the sector reported drops in all end uses, with reductions in printing and writing capacity falling 49%. This represented over half of the lost capacity nationwide. Newsprint, household/sanitary, and market pulp segments also had notable declines, each representing 10%-16% of the lost capacity. Regionally, capacity reductions in the U.S. South accounted for most of the volume lost (64%), with the U.S. West and North each representing 18%. The West experienced the largest and most severe drop in capacity for a given region, with pulp and paper mill closures and reductions decreasing capacity by 26%.
A study finds that replacing natural gas with electric and biomass power, along with improved energy efficiency, could help some pulp and paper mills reach zero net emissions. Researchers began with a simulation of mills defined by two characteristics: whether they used virgin or recycled fibers, and whether they were integrated or not. A virgin mill creates pulp and paper from fresh wood… while a recycled fiber mill re-uses fibers which may have been previously processed. A mill is considered integrated if it has the capability to turn wood and other biomass into pulp and paper on site, whereas a non-integrated mill uses pulp produced and dried off site. …The final strategy researchers analyzed was the use of low-carbon alternatives, like using waste wood in boilers instead of fossil fuels. The effectiveness changed depending on whether or not the mill was integrated, but all types saw reductions in greenhouse gas emissions.