The United States government has announced a new initiative to investigate the potential national security threats posed by imports of timber, lumber, and their derivative products. The investigation will be conducted under section 232 of the Trade Expansion Act, which allows for assessments of how imports affect national security.
According to a statement from the White House, "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."
Despite having significant timber resources and production capacity that could meet 95 percent of domestic softwood consumption in 2024, the U.S. has been a net importer of lumber since 2016. The White House emphasized that "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."
The Secretary of Commerce is tasked with conducting this investigation. It will consider factors such as current and projected demand for timber and lumber in the U.S., domestic production capabilities versus foreign supply chains' roles in meeting demand, impacts from foreign government subsidies on competitiveness, feasibility for increasing domestic capacity to reduce imports, and whether existing trade policies are sufficient or if additional measures like tariffs or quotas are needed.
Within 270 days from March 1st, 2025, the Secretary must submit a report to the President detailing findings on whether these imports threaten national security. This report should include recommendations for mitigating any identified threats through potential tariffs or export controls as well as policy suggestions aimed at strengthening domestic supply chains via strategic investments or permitting reforms.
The White House clarified that "nothing in this order shall be construed to impair or otherwise affect" existing legal authorities or functions related to budgetary proposals. Furthermore, it stated that this order does not create enforceable rights against the U.S. government.
