New Tariffs, But Not On Timber And Lumber

The temporary exemption of tariffs on timber and lumber imported into the United States provides some relief to New Zealand exporters. Though this exemption could be short lived based on the outcome of the Section 232 investigation aimed at determining the effects imports of timber, lumber and their derivative products have on the United Sates supply chain.

Exports of radiata pine products from New Zealand to the United States were estimated at $358 million, making the United States our third largest export market for forest products behind China and Australia. Our timber and lumber products are highly valued in the United States for their quality and appearance within the domestic DIY and home building market.

The exemption comes about through internal United States lobbying, by the likes of the American Building Materials Alliance and National Association of Home Builders, who have been speaking with White House advisors and providing formal letters to the President urging him to rethink placing a tariff that would weaken a critical supply chain. As a response, the administration has recognised that raising costs on timber and lumber would hurt housing affordability, disrupt construction, and weaken an important supply chain.

An on-going challenge facing home builders in the United States is the cost and availability of building materials such as lumber, with price increases of just over 30 percent over the last few months. Further supply chain disruptions from increased tariffs coupled with increased demand for materials could also hinder rebuilding efforts in areas affected by natural disasters, which the administration has pledged to rebuild as quickly as possible.

Given this temporary tariff exemption, we thank our kindred Associations in the United States for making this happen. We now wait for completion of the s. 232 investigation.

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