Addressing the Threat to National Security from Imports of Timber, Lumber

Executive Orders

TLDR

This executive order directs Commerce to investigate timber/lumber imports as a national security issue under Section 232, potentially leading to new tariffs on major suppliers like Canada. It argues the US has capacity to supply 95% of domestic needs but remains a net importer since 2016. A complementary order aims to expand domestic timber production by streamlining permitting. The investigation must conclude by November 2025 and could significantly impact construction costs, international trade relations, and forest management policies.

This executive order directs the Commerce Department to investigate the national security implications of timber and lumber imports under Section 232 of the Trade Expansion Act of 1962. This investigation could lead to new tariffs on lumber imports, particularly targeting major suppliers like Canada, Germany, and Brazil. The order claims the wood products industry is “critical” to national security, economic strength, and industrial resilience.

The administration asserts that:

  • The U.S. softwood lumber industry has production capacity to supply 95% of domestic consumption needs
  • Despite this capacity, the U.S. has been a net lumber importer since 2016
  • Foreign producers are “dumping” wood products into U.S. markets
  • Military construction spending (over $10 billion annually) makes lumber a national security issue
  • Current timber policies contribute to higher construction costs and housing expenses

The U.S. lumber market shows evidence of increasing domestic capacity:

  • Industry analysis suggests U.S. lumber trade enforcement has boosted domestic production by approximately 8 billion board feet since 2016
  • Forecasts indicate the U.S. could become a net exporter of softwood lumber by 2027
  • U.S. exports to overseas destinations could increase from 1.11 billion board feet in 2023 to 2.7 billion board feet by 2027

Section 232 investigations provide the President with broad authority to adjust imports deemed threatening to national security:

  • The Commerce Department must complete its investigation within 270 days (by late November 2025)
  • Previous legal challenges to Section 232 tariffs have generally affirmed presidential authority
  • Trump previously used Section 232 to impose tariffs on steel (25%) and aluminum (10%) during his first administration
  • In February 2025, Trump reinstated 25% tariffs on all steel imports and increased aluminum tariffs from 10% to 25%

If new tariffs are imposed, significant economic effects could include:

  • Higher construction costs and potential home price inflation
  • Additional tariffs would come on top of existing 14.5% duties on Canadian softwood lumber
  • Previous analysis of the 2006 U.S.-Canada Softwood Lumber Agreement showed U.S. producers gained $1.6 billion while U.S. consumers lost $2.3 billion
  • Domestic producers would likely expand operations to capture market share from imports
  • Manufacturers relying on imported specialty woods might face higher input costs and supply chain disruptions

The investigation creates significant international trade tensions:

  • Canada, as the largest supplier of softwood lumber to the U.S., would be most directly affected
  • The investigation follows Trump’s separate threat to impose 25% tariffs on all Canadian and Mexican goods over border security concerns
  • Germany, Brazil, China, and South Korea are also mentioned as potential targets
  • The risk of retaliatory measures could lead to an escalating trade war

Alongside the trade investigation, Trump signed a complementary executive order titled “Immediate Expansion of American Timber Production” that:

  • Directs the Interior and Agriculture Secretaries to facilitate increased timber production
  • Aims to streamline permitting processes for obtaining wood products
  • Claims to help prevent wildfires and improve wildlife habitat through increased harvesting
  • Seeks to reduce regulatory obstacles that have allegedly prevented full utilization of domestic resources

The executive orders reflect broader strategic objectives:

  • Using Section 232 provides access to powerful trade tools without requiring congressional approval
  • The approach targets multiple constituencies: rural timber communities, construction industry, homebuyers, and national security interests
  • Framing lumber as a national security issue strengthens the legal position for potential tariffs
  • The timing aligns with shifting industry dynamics as domestic production capacity expands

The investigation’s outcome, expected by late November 2025, will significantly impact multiple stakeholders across the economy and could reshape both U.S. trade policy and forest management approaches.

By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (Trade Expansion Act), it is hereby ordered:

Section 1.

Policy.

The wood products industry, composed of timber, lumber, and their derivative products (such as paper products, furniture, and cabinetry) is a critical manufacturing industry essential to the national security, economic strength, and industrial resilience of the United States. This industry plays a vital role in key downstream civilian industries, including construction.

The United States faces significant vulnerabilities in the wood supply chain from imported timber, lumber, and their derivative products being dumped onto the United States market.

The United States has ample timber resources. The current United States softwood lumber industry has the practical production capacity to supply 95 percent of the United States’ 2024 softwood consumption. Yet, since 2016 the United States has been a net importer of lumber.

Wood products are a key input used by both the civilian construction industry and the military. Each year, the United States military spends over 10 billion dollars on construction. The military also invests in innovative building material technology, including processes to create innovative wood products such as cross-laminated timber. The procurement of these building materials depends on a strong domestic lumber industry and a manufacturing base capable of meeting both military-specific and wider civilian needs.

It is the policy of the United States to ensure reliable, secure, and resilient domestic supply chains of timber, lumber, and their derivative products. Unfair subsidies and foreign government support for foreign timber, lumber, and their derivative products necessitate action under section 232 of the Trade Expansion Act to determine whether imports of these products threaten to impair national security.

Sec. 2.

Investigation.

(a) The Secretary of Commerce shall 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.

(b) In conducting the investigation described in subsection (a) of this section, the Secretary of Commerce shall assess the factors set forth in 19 U.S.C. 1862(d), labeled “Domestic production for national defense; impact of foreign competition on economic welfare of domestic industries,” as well as other relevant factors, including:

(i) the current and projected demand for timber and lumber in the United States;

(ii) the extent to which domestic production of timber and lumber can meet domestic demand;

(iii) the role of foreign supply chains, particularly of major exporters, in meeting United States timber and lumber demand;

(iv) the impact of foreign government subsidies and predatory trade practices on United States timber, lumber, and derivative product industry competitiveness;

(v) the feasibility of increasing domestic timber and lumber capacity to reduce imports; and

(vi) 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.

Sec. 3.

Required Actions.

(a) The Secretary of Commerce shall consult with the Secretary of Defense and the heads of other relevant executive departments and agencies as determined by the Secretary of Commerce to evaluate the national security risks associated with imports of timber, lumber, and their derivative products.

(b) No later than 270 days after the date of this order, the Secretary of Commerce shall submit a report to the President that includes:

(i) findings on whether imports of timber, lumber, and their derivative products threaten national security;

(ii) recommendations on actions to mitigate such threats, including potential tariffs, export controls, or incentives to increase domestic production; and

(iii) policy recommendations for strengthening the United States timber and lumber supply chain through strategic investments and permitting reforms.

Sec. 4.

Definitions.

As used in this order:

(a) The term “timber” refers to wood that has not been processed.

(b) The term “lumber” refers to wood that has been processed, including wood that has been milled and cut into boards or planks.

Sec. 5.

General Provisions.

(a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

© This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE,
March 1, 2025.