In a move that NAHB has encouraged, President Trump signed an executive order that calls for a 25% increase in timber production from federal lands. NAHB has taken a leading role in urging the administration and Congress to increase the domestic supply of timber from federally owned lands in an environmentally responsible manner. …This new development will help the nation move in the direction of self-sufficiency. However, due to logistical issues and the long time to ramp up sawmill production, it is projected to take months, if not years, before the market feels any impact from this action. …Offsetting the good news to expand domestic timber output is the fact that tariffs on Canadian lumber shipments into the US are expected to more than double by September.
These duties are completely separate from the global reciprocal tariffs announced by President Trump last week. When the president made his announcement, NAHB scored an important win when Trump chose to continue current exemptions for Canadian and Mexican products, including a specific exemption for lumber from any new tariffs at this time. It’s clear we are not out of the woods yet on the possibility that Canadian lumber tariffs could run even higher than 34.5% later this year. The White House issued an executive order in March commanding the Commerce Department to investigate the national security impacts of imports of timber and lumber. NAHB has argued that housing is a critical component of national security and that no further lumber tariffs should be imposed. …For now, Canadian lumber tariffs stand at 14.5%, but members should be forewarned to expect higher tariffs later this year and plan accordingly.
BURNABY, BC – The United Steelworkers union (USW) District 3 and the USW Wood Council locals in BC applaud the approach of Premier Eby in fighting for workers and federal government supports in light of the announcement by the US Department of Commerce that will increase the current tariff and countervailing duty average to 34.45% from 14%. “The continual application of tariffs and duties by the US on our USW membership in Canada is wrong and unwarranted,” said USW District 3 Director Scott Lunny. “Premier’s Eby’s approach in pressing the federal government in Ottawa for worker supports is key.” …“The Trump administration and the U.S. Department of Commerce continue to be subjected to the influence of the US Softwood Lumber Coalition, wrongfully claiming the Canadian industry is subsidized,” said Jeff Bromley, USW Wood Council Chair. …“It’s protectionism, pure and simple,” added Bromley.
Premier David Eby cautioned last week that BC should not make too much of the appearance that the country “dodged a bullet” in the latest round of tariff fire from the US. …Eby’s fears were borne out, when the US announced a plan to more than double the duty against Canadian softwood. …Eby told the legislature that Forests Ministry staff are “working on a proposal to defer stumpage.” The tariff threat likely means a setback for the ambitious goal that Eby set for the forest minister, Ravi Parmar. He directed Parmar to “work toward…a harvest of 45 million cubic metres per year”. The increase would be 50 per cent greater than last year’s 30 million cubic metres harvest, but still well short of the almost 60 million harvested the year the New Democrats took office. …Though the industry welcomed the premier’s target for increasing the harvest, it remains privately skeptical that the NDP can make the necessary changes in regulation and permitting to bring about the increase.
The US is set to more than double the duty it charges on softwood lumber imports from Canada, with the planned new rate set at 34.45%, up from the previous 14.54%. …New softwood lumber duties were long-feared amid the growing trade war between Canada and the US, and would be the latest blow to BC’s beleaguered forestry industry, which has seen thousands of workers laid off over the last few years. BC Premier David Eby condemned the planned duty hike as an “attack on forest workers and British Columbians” in a statement on Saturday. While Canada may have been spared additional tariffs from the US on Wednesday, anxiety around levies on BC’s softwood lumber industry remains high. …Under the U.S. Tariff Act, the Department of Commerce determines whether goods are being sold at less than fair value or if they’re benefiting from subsidies provided by foreign governments.
Canada’s economy was already stumbling a few months ago. Now, it is on the brink of recession because of President Trump’s tariffs. Canada’s economy is starting to shed jobs after months of tariff-fueled anxiety, while the outlook among businesses and consumers has become increasingly dour as one of the US’s largest trading partners braces for more pain to come. …Last week, Canada’s statistical agency reported that 33,000 Canadians lost their jobs in March, the worst jobs report in more than three years. On Monday, the Bank of Canada reported that businesses and households expect inflation to climb, and company executives warned they expect to pass on higher, tariff-fueled costs to customers regardless of the hit to consumer demand. …Canada’s fiscal and monetary outlook has also been complicated by the government’s decision to retaliate against the US. [to access the full story a WSJ subscription is required]
Homebuilder stocks plunged Monday following reports that the US is preparing to sharply increase tariffs on Canadian lumber, independent of President Donald Trump’s new “reciprocal” tariffs. …After reports of the new lumber duties emerged over the weekend, however, shares of homebuilders plunged swiftly Monday. …”Tariffs are the clear culprit for the stock market pullback and fears of recession,” says Realtor.com® Senior Economist Joel Berner. “Recession risk is especially poignant for builders.” …The latest round of tariffs, however, will likely increase materials costs for all homebuilders, to some extent, with a recent survey of builders finding that they expect an average cost increase of $9,200 per home as a result of tariffs. …Over the weekend, Moody’s Analytics Chief Economist Mark Zandi raised his outlook for the odds of a recession this year to 60%, up from just 15% a few months ago.
While the current tariff war is justifiably on the minds of many Americans, another type of import tax may be coming later this summer that could have a big impact on new home construction. …The US is preparing to raise duties on Canadian softwood lumber from 14.5% to 34.45%. …A final review of the levies will be published in August or September, with the rate increase taking effect then, according to the National Association of Home Builders. The NAHB has previously estimated that Trump’s tariffs could increase the cost of building a new home by $9,200. ….The proposal to more than double the tax would be a blow to Canadians, but it would also mean “driving up housing costs for Americans,” BC Premier David Eby said. …Some have praised the proposal, suggesting that it will give domestic lumber companies an opportunity to increase production, even if that means higher costs.
The Swedish Forest Industries Federation expresses concern over newly imposed US tariffs on pulp, paper, and board imports from the EU, which took effect on April 5 at 10% and are scheduled to double to 20% by April 2025. The federation emphasizes that free trade is critical to the Swedish forest industry, which is heavily export-oriented, with 5–10% of its exports directed to the United States. Europe remains its largest market, accounting for around 60%. …The federation’s CEO, Viveka Beckeman, highlights that the sector depends on international demand. While timber has been excluded from the latest round of tariffs, it remains under review in an ongoing US investigation that may lead to import duties as early as November 2025. The industry, which employs approximately 140,000 people in Sweden either directly or indirectly, represents 9–12% of the country’s industrial employment, export, turnover, and added value. 
Wall Street’s main indexes reversed course and moved sharply higher after White House economic adviser Kevin Hassett said in an interview that President Donald Trump was considering a 90-day tariff pause on all countries expect China. At 10:20 a.m. the Dow Jones Industrial Average rose 333.50 points, or 0.87%, to 38,614.49, the S&P 500 gained 79.99 points, or 1.69%, to 5,154.07 and the Nasdaq Composite gained 362.69 points, or 2.33%, to 15,950.47.
US stocks opened lower Monday as markets around the world tumbled over concerns about how President Trump’s sweeping tariffs might upend the global economy and stymie US economic growth. Markets opened in bear market territory – a decline of 20% from a recent peak – after a historic rout in Asia and massive losses in Europe. The Dow fell 1,200 points, or 3.2%. The broader S&P 500 was 3.4% lower and opened in bear territory. The Nasdaq Composite slid 3.96%. The S&P 500 hit a record high less than seven weeks ago, on February 19. If the index closes in bear market territory, that would be the second-fastest peak-to-bear market shift in history. Wall Street’s fear gauge has surged to levels not seen since the Covid-19 pandemic as investors fret over the market’s next move. CNN’s Fear and Greed Index has slumped to its lowest levels this year.
US trade wars could have major implications for an already tenuous housing market….A price hike on building materials will likely make building affordable housing feasible, an approach that many real estate experts believe is crucial to resolving the housing market gridlock. The housing sector comprises over 15% of the US GDP and will be heavily impacted by tariffs on building materials such as lumber and steel. And 70% of imported lumber comes from Canada. The NAHB noted that the tariffs are “not only expected to raise the cost of building materials, which are up 34% since December 2020, far higher than the rate of inflation, but also wreak havoc on the building material supply chain. In turn, this will put even more upward price pressure on building materials.” …Uncertainty stemming from the newly unveiled tariffs has eroded consumer and investor confidence, which has, in turn, diminished homebuyer optimism.
FSC is extending the suspension of the Asia Pulp and Paper (APP) Memorandum of Understanding on the implementation of the FSC Remedy Framework until the end of June 2025. The extension of the suspension is due to a conflict of interest identified between Domtar and the law firm FSC identified for conducting the legal review of APP and Domtar’s corporate groups. FSC is identifying a different independent, third-party law firm to conduct this legal review. In January 2025, FSC suspended APP’s remedy MoU until the end of March 2025 because of the changes APP and Domtar announced regarding the concentration of sole beneficial ownership of the two corporate groups. FSC is commissioning a legal review of the corporate groups of Domtar and APP to better understand the implications and the effect of this change, and any impacts on the scope of the APP remedy process and the MoU. FSC disassociated from APP’s entire corporate group in 2007. 
KINGSPORT, Tennessee – The Domtar Packaging Mill in Kingsport has operated for decades, and residents have noticed one significant aspect of the mill that some believe has caused community strife: the smell. The Tennessee Department of Environment and Conservation (TDEC) is currently investigating three complaints about the odor from Domtar between March 31 and April 1. The TDEC said: “Although TDEC does not regulate odors, we do want to ensure that the facility is complying with its permit conditions.” …At the last Kingsport Economic Development Board meeting on April 1, Domtar updated the board on the wastewater treatment system plan. …The short-term plan involves reducing mill material losses and flow and optimizing the current wastewater treatment system. Domtar says this will last around a year. The long-term plan involves building a new anaerobic digester system. Domtar estimates that this project could take up to 18 months.