DHA eNews - U.S. Imposes 50% Tariffs On Canada
The U.S. and Canada trade war got worse in recent weeks, as negotiations to avert President Trump's new 50% tariffs fell apart. Canada walked away and imposed retaliatory tariffs that matched the U.S. tariffs.
The most common question I've received since this event is "How long will this fight go on?" I’m skeptical of a near-term solution. Jamieson Greer, the U.S. Trade Representative, really seems to think the U.S. was offering Canada a good deal. But Canada walked away despite high potential economic losses. Perhaps political considerations are making a solution harder. Prime Minister Mark Carney and Canada's Liberal Party are gaining in popularity by standing up to Trump. We all know President Trump doesn't want to be seen as soft. So, I think this fight could go on until more economic pain is actually felt on both sides of the border.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
PHOTO © DANIEL TOROK
On August 21, U.S.-Canada trade negotiations broke down. Prime Minister Carney suspended negotiations, recalled Canada's negotiating team, and confirmed that Canada would respond to new tariffs with matching dollar-for-dollar retaliatory tariffs. President Trump's 50% tariffs on many Canadian goods are now in effect.
On August 25, Canada retaliated to U.S. 50% tariffs on many Canadian imports with matching 50% tariffs on U.S. imports. This affects our sector, as it appears that Canada also applied 50% tariffs on imports of U.S. hardwood plywood, beginning September 8. There are no new tariffs on imports of hardwood veneer.
Polls show that most Canadians, angered by Trump's tariffs on imports from Canada and his frequent comments about making Canada the 51st state, support taking a tough stance in trade negotiations. Prime Minister Carney enjoys high approval ratings, and a recent survey showed that more than 75% of Canadians surveyed said he was right to walk away from trade negotiations with the U.S.
The Trump administration announced that it intends to completely rescind the 2001 Roadless Area Conservation Rule, known as the Roadless Rule, which bans building roads on more than 44 million acres of federal forest land. As written, the Roadless Rule is overly restrictive, limits state and local land management, makes fighting forest fires more difficult, and unnecessarily prevents responsible federal timber harvesting.
DHA joined more than 1,000 U.S. forestry and forest products associations and companies in a letter to President Trump. The letter encourages the Trump administration to continue to push European Union leaders to recognize that the U.S. forest and wood products supply chain poses a low risk to global deforestation and to remove all unnecessary and burdensome regulations in the EU Deforestation Regulation (EUDR) for U.S. exporters.
The International Code Council recently released the results of public comment hearings and an online government consensus vote, completing the final stage of the 2024-2026 code development cycle and leading to the finalization of the 2027 International Building Code, International Residential Code, and other codes.
U.S. imports of hardwood plywood are down by 34% year to date through June. The volume of imports from Vietnam and Indonesia has fallen by more than 60%, likely as a result of the successful antidumping and countervailing duty challenges brought by the Coalition for Fair Trade of Hardwood Plywood. However, the spike in imports from Malaysia and Cambodia, up by 212% and 654%, respectively, suggests that transshipment may already be happening.
U.S. imports of wooden furniture in the first half of 2026 were down by 23% versus the same period last year, a decline of more than $2.33 billion, to a total of just under $7.86 billion. Imports from every major supplying country have fallen by at least 10%. Imports from China dropped by 43%. Imports from Mexico and Malaysia fell by more than 30%.
The Trump administration recently published a report, The Great Transshipment Scam, that shows the enormous scale of transshipment and tariff circumvention. The report documents how goods subject to higher U.S. tariffs are routinely rerouted through countries with lower tariffs, undermining both tariff enforcement and U.S. manufacturing.
Loggers and truckers in the Northeast will be negatively affected by the loss of a major wood pulp market. Finch, a paper manufacturer in New York, said it will no longer produce its own wood pulp, leaving the loggers and truckers who supplied its pulp materials in the lurch. It will still produce paper at its Glens Falls mill but will buy pulp from another supplier.
New research shows promising potential for one of North America's most abundant but underutilized hardwood species. Many hardwood species, including red maple, have mechanical properties that can compete with or exceed those of commonly used softwoods. However, a key barrier has been the lack of grading systems for evaluating hardwoods' structural performance.
"Harvest activities help re-establish more natural forest conditions by thinning overgrown stands, promoting age and species diversity, and reducing the likelihood of large, high severity wildfires," said U.S. Department of Agriculture spokesperson Megan Bush.
A new study shows that economic losses from forest disturbances in the eastern U.S. are growing. Climate change projections predict an increase in the rate and intensity of forest disturbances like wildfires and hurricanes. The study compared observed forest mortality and inferred economic losses from forest disturbances from 2000–2020.
How will new mini-grants help the future of the forestry industry?