Policy bankrupts large swaths of the logging industry. We create restrictions that substantially increase the cost of harvesting timber on public forest lands ( and add fuel load btw ). This has left major land owners as our primary source of timber ( read monopolistic ). Allow these timber companies to ship our timber overseas to create an intentional artificial shortage ( yes it is documented ).<p>I know, let's solve this problem by adding tariffs on timber from Canada who openly supports their timber industry.<p>Alternatively, you could fix the problems at home!<p>( Might be a little tainted as I grew up when the spotted owl shutdown the living for entire towns in Washington and our fathers had to go to Alaska and Canada for years to make money to send home. )
Incredible. Instead of putting tariffs on Chinese cheap stuff that most people can get by without, US is putting tariff on one of the main exports of its closest allies.
This is part of a long, drawn out disagreement (e.g. see <a href="https://en.wikipedia.org/wiki/Canada%E2%80%93United_States_softwood_lumber_dispute" rel="nofollow">https://en.wikipedia.org/wiki/Canada%E2%80%93United_States_s...</a>)
It's interesting who owns a lot of the saw mills in Canada.<p><a href="https://www.lesprom.com/en/news/13_biggest_lumber_companies_increase_production_by_2_3_to_34_2_billion_board_feet_in_2017_82957/" rel="nofollow">https://www.lesprom.com/en/news/13_biggest_lumber_companies_...</a><p>*Four of the top ten largest firms are based in B.C. (West Fraser, Canfor, Interfor and Tolko), with the first three holding substantial sawmilling assets in the U.S.*<p>So it seems these Corps own assets on both sides of the border and it isn't clear how these tariffs help them. From what I understand (possibly wrong,) there has even been more consolidation in the Lumber Industry in the last couple of years and like 5 Companies own all the Sawmills on both sides of the border.
(I am not a US citizen, but visited many times)
Why not build houses using concrete/cement? Poor Asian countries have been building houses for decades using concrete and less maintenance. No, it is not about weather. Concrete can be easily used in Southern US states where winter is less than a month or no snow at all. At least the structure can be concrete and the walls be wood or drywall. I think it is the wood mafia trying to make a living out of enforcing city codes to use only lumber for houses.
This is a weird decision given that the eviction moratorium has been overturned by the courts and millions are going to be facing housing difficulties over the rest of the year as those evictions start to happen. Both the sales and rental markets are very low on supply right now. Increasing housing costs through higher building expenses seems like it will end up being a political land mine.
Very surprised to see some arguments in the article saying lumber only make 4% of construction prices. I'd love to know what type of construction they're looking at.<p>We're currently in the process of building a house and current lumber prices (because of covid mainly) are definitely impacting costs, to the point that it's one of the first thing that both our architect, and then builders mentioned.<p>Everybody involved in the trade have mentioned the idea of waiting an extra year before building, mostly because of lumber prices.
Currently those tariffs have a big impact on the markets in Germany, Austria and others in Europe too.
According to the media the US is buying wood at large [e.g. 1] in combo with local companies trying to stock up prices for wooden build home increased 20-30% in the region. If you talk to local carpenters (Austria) lead times are a roulette game and prices change daily.<p>The post-covid effect may complicate things furthermore.<p>[1] <a href="https://www.bloomberg.com/news/articles/2021-05-12/u-s-lumber-importers-are-driving-buying-mania-for-european-wood" rel="nofollow">https://www.bloomberg.com/news/articles/2021-05-12/u-s-lumbe...</a>
If this actually works to shore up the domestic end-to-end supply chain for lumber and lumber products so that we don't have to rely on growing and harvesting trees here, sending them across the world for processing, just to ship them back as plywood and other wood products then great!<p>Based on what products this is targeting and the current domestic labor situation here it appears that this will absolutely not be the case.
For reference, the base price/square foot of new construction increased 20% when Trump introduced these tariffs.<p>He also tariffed Chinese concrete at the same time.<p>The reason it went up so much is (like any other business), contractors and manufacturers need to preserve their profit margins, multiplying the impact of the tariffs for new home builders.<p>It also allowed domestic producers to hike their prices (which they did). Also, the tariffs caused many substitutions of slightly more expensive (but now cheaper) materials, leading to bizarre shortages and more price hikes.<p>Then, covid hit and now this. It’s a complete disaster.<p>Is the department of commerce actively trying to get Trump back in in 2024, or do they just like inflation, homelessness and high interest rates?
Maybe China will step up and take in the extra lumber. Canada increasingly relies on exports to China anyway. Canadians are holding joint military exercises with them. And Chinese investors are buying up prime property in Canada. Nothing wrong with it. Just the way the cookie crumbles.
I can't say that I understand that move since the price of lumber is at ATH but as a Canadian if it reduces the price for wood (and housing) I am all for it.
As a Canadian - awesome! (Given that I understand the consequences correctly, that is.)<p>The incredible demand, coupled with supply chain troubles, has driven up the price of lumber here nearly 300% A 8' 2x4 was $2.95 this time last year, today it's $10.<p>I hope this cools the exports of lumber from Canada, and we see the prices move back towards a sane level.