Executive Orders on Timber and Lumber Imports and Expanding US Timber Production
On March 1, President Trump issued a pair of Executive Orders intended to address the impact of timber and lumber imports and to promote the domestic production of timber, lumber, and wood products. First, citing the critical role that the wood products industry plays in national security, economic strength, and industrial resilience, as well as their significance for downstream industries, President Trump directed the Secretary of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act to determine the effects on the national security of imports of timber, lumber, and their derivative products. Second, highlighting a concern that Federal policies have prevented full utilization of the nation’s abundant domestic timber resources, President Trump instructed relevant agencies to conduct a review of federal policies that are believed to have hampered the full utilization of domestic timber resources.
Investigation of the Impact of Timber and Lumber Imports
In his Executive Order Addressing the Threat to National Security from Imports of Timber, Lumber, the President directs the Secretary of Commerce to initiate an investigation pursuant to Section 232 of the Trade Expansion Act of 1962 and examine the effects on the national security of imports of timber, lumber, and their derivative products, such as paper products, furniture, and cabinetry. The Executive Order notes that, although the United States has “ample timber resources,” and the “capacity to supply 95 percent of [its] softwood consumption for 2024,” since 2016, the United States has been a net importer of lumber.
In conducting the investigation, the Secretary, in consultation with the Department of Defense, will assess the statutory factors set forth in Section 232, including the domestic production needed for projected national defense requirements, the capacity of domestic industries to meet such requirements, and the availability of the resources essential to the national defense. The Executive Order also directs the Secretary to consider:
- the current and projected demand for timber and lumber in the United States;
- the extent to which domestic production of timber and lumber can meet domestic demand;
- the role of foreign supply chains, particularly of major exporters, in meeting United States timber and lumber demand;
- the impact of foreign government subsidies and predatory trade practices on United States timber, lumber, and derivative product industry competitiveness;
- the feasibility of increasing domestic timber and lumber capacity to reduce imports; and
- the impact of current trade policies on domestic timber, lumber, and derivative product production, and whether additional measures, including tariffs or quotas, are necessary to protect national security.
The investigation will cover imports from all countries and any potential remedy could be imposed on all imports of the covered products.
Following this investigation, the Secretary will submit a report to President Trump with findings and recommendations on potential actions to mitigate any national security threats. A report is due to the President within 270 days, by November 26, 2025. If the report concludes that imports of timber, lumber, and their derivative products threaten national security, the Secretary of Commerce may recommend trade remedies, which could include tariffs or import quotas. In addition, it is notable that the Executive Order mentions the potential for export controls, production incentives for the domestic industry, and permitting reforms as among the potential topics for recommendations. Following receipt of the Secretary’s report, the President will have 90 days to determine whether to act on any recommendations.
Section 232 gives the President broad discretion to implement import adjustments and trade remedies. This marks the second Section 232 investigation initiated by President Trump in his second term and follows a series of investigations that were conducted during his first term, which underscores that Section 232 continues to be a preferred tool used by the Trump Administration to advance its trade-related agenda.
Any import adjustment or trade remedy implemented as a result of the Section 232 investigation would be additive to the 25% tariff on most products imported from Canada that went into effect as of March 4, 2025. Canadian energy or energy resources are subject to a lower 10% duty.
Measures to Expand Domestic Timber Production
Along with the initiation of the Section 232 investigation, the President issued an Executive Order aimed at increasing domestic timber production - Immediate Expansion of American Timber Production. Citing “heavy-handed Federal Policies” that have prevent the use of the “abundance of timber resources that are more than adequate to meet our domestic timber product needs,” this Executive Order is intended to facilitate the expansion of timber production in the United States.
Among other things, the Order directs the Bureau of Land Management and US Forest Service to expand timber production and calls for streamlining agency permitting processes and Endangered Species Act consultations to expedite forestry projects. The Executive Order calls for the consideration of adopting new categorical exclusions under the National Environmental Policy Act, and it also seeks to reestablish exclusions for timber salvage and thinning. The Order also directs the establishment of a target amount of timber to be offered for sale from federal lands during the next four years.
We are continuing to monitor the actions resulting from these related Executive Orders and consider their impact in the context of the Trump Administration’s broader trade policies and goals.
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