US President Donald Trump has signed an executive order directing an investigation into the impact of lumber and timber imports on national security. The probe, led by Commerce Secretary Howard Lutnick, will examine potential vulnerabilities in the US wood supply chain, particularly regarding imported timber, lumber, and derivative products.
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A White House official cited concerns over "significant vulnerabilities" caused by foreign wood products being "dumped" into the market, specifically mentioning China and South Korea. The investigation will be conducted under Section 232 of the Trade Expansion Act of 1962, which allows the imposition of import restrictions if national security is threatened.
Trump also signed a separate executive order aimed at boosting domestic timber production to lower housing and construction costs. The White House blamed previous policies for increasing wildfire risks, damaging wildlife habitats, and contributing to trade deficits. The official claimed that heavily subsidised wood products, including furniture and kitchen cabinets from China and South Korea, undercut US industries.
Additionally, the official noted that lumber is vital for US military infrastructure, as the Pentagon relies on a stable supply for construction purposes. Trump had previously hinted at imposing a 25% tariff on lumber and wood products.
The move follows Trump's recent executive order investigating copper imports, which could also result in tariffs on the metal. South Korea's furniture exports to the US totalled $30 million last year, with analysts predicting limited impact from potential tariffs.
Source: www.daijiworld.com