Wondering how the U.S. lumber market might fare under the Trump Administration? This new article, published by the NC State College of Natural Resources, provides insight.
NC State associate professor of forest economics and policy forest economics, Rajan Parajuli, suggests "the U.S. lumber and the overall wood product markets may remain volatile given the uncertainty in trade and market policies under the Trump administration."
Further, the article cites that "Trump’s proposed tariff would require U.S. companies to pay a 25% tax to the U.S. government when importing Canadian softwood lumber products, with the goal of encouraging those companies to invest in domestic production instead. U.S. companies would likely attempt to recoup tariff-related losses by raising the price of Canadian softwood lumber, which would potentially impact the housing market by making building materials more expensive. “Tariffs unequivocally work towards pushing domestic lumber prices higher. When that happens, it usually adds up to higher costs for consumers,” Parajuli said."
