Lumber Soars to 2-1/2-Year High on Tariffs

Lumber futures surged above $650 per thousand board feet in March, the highest in two-and-a-half years, after US President Trump imposed a 25% tariff on Canadian goods.

The measures by the US President add on to existing 14.4% taxes lumber from Canada, a major exporter that is responsible for around 30% of US consumption, by removing the competitiveness of Canadian supply and pressuring capacity for domestic consumers.

Tariff threats had already triggered a surge in wood prices since being suggested in Trump’s inauguration, coming at a time when the US forests already face supply pressures.

North American production slumped by 3.1 billion board feet in 2024 due to widespread sawmill closures, particularly in Canada, where rising costs have forced cutbacks.