Maine exports about 2 million tons of wood products annually, and imports 2.3 million tons – mostly from Canada, according to a recent industry report from the Maine Forest Service. Lumber industry officials are concerned the Trump administration’s sweeping tariffs could hurt business, said Patrick Strauch, of the Maine Forest Products Council. “Maine’s forest economy is really intertwined with both Quebec and New Brunswick, Strauch said. “We’re concerned about a broad tariff and how it would distrust disrupt the economy.” Wood pulp and fibers, in particular, are a big part of what moves across the border in order to produce particle board, packaging, and other products in Maine. Strauch said mills located near the border import goods from Canada on a regular basis. “If you’re a pulp mill that’s located close to the border of Canada, you’re going to be importing wood fiber from Canada. That’s just how it works in Maine,” he said.
The vast majority—72%—of respondents to an HBSDealer poll question say the United States should not pursue a policy of aggressive growth. However, an aggressive approach has been launched —and then quickly paused. …For the home improvement industry, tariffs on Canadian lumber continue to be a central and controversial topic. …NAHB Chairman Carl Harris. “NAHB urges the administration to reconsider this action on tariffs, and we will continue to work with policymakers to eliminate barriers that make housing more costly and prevent builders from boosting housing production.” …Meanwhile, with a deeply ingrained opposition to imports subsidized by the Canadian government, the U.S. lumber industry applauds the tariffs. It also discounts the idea that increasing the tariffs on Canadian lumber imports would lead to significantly higher home prices. The US Lumber Coalition argues that softwood lumber prices are currently low and have not kept pace with general inflation.
President Trump conceded Sunday that there may be “some pain” from his sweeping tariffs on Mexico and Canada, but they will eventually lead to a new “GOLDEN AGE.” Nice of him to promise a glorious future because the pain is already unfolding. …He also included a blast at these columns for leading the “Tariff Lobby” after our editorial called his 25% across-the-board tariffs on our friends and neighbors “
BEIJING — China countered President Trump’s across-the-board tariffs on Chinese products with tariffs on select U.S. imports Tuesday, as well as announcing an antitrust investigation into Google. The Chinese response was “measured,” said John Gong, a professor at the University of International Business and Economics in Beijing. “I don’t think they want the trade war escalating,” he said. …This time, analysts said, China is much better prepared to counter, with the government announcing a slew of measures that cut across different sectors of the economy, from energy to individual U.S. companies. China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil. …China also announced export controls on several elements critical to the production of modern high-tech products. “A risk is that this is the beginning of a tit-for-tat trade war,” Stephen Dover of Franklin Templeton said.
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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]
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%.
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