Market shaken as Canadian lumber tariffs exempted

Trading in most markets stalled after Wednesday’s announcement that lumber imports from Canada would be exempt from the newly imposed tariffs by the Trump administration. The most notable immediate impact was seen in lumber futures, where prices tumbled more than $50 on Thursday.

In most physical markets, prices adjusted mildly in both directions. While digesting the tariff news, traders also acknowledged the ongoing Section 232 investigation, which could lead to tariffs on lumber imports down the road.

The US Department of Commerce has up to 270 days to complete this investigation that began March 1, but Secretary Howard Lutnick has said he will expedite the process. When and if this could lead to lumber tariffs on imports to the US is uncertain.

Trump’s recently announced tariffs had an impact on the broader economy and undermined trader confidence in near-term prospects. The plummeting stock market had a chilling effect on buyers throughout the distribution pipeline.

Western S-P-F sales were quiet all week, but fell particularly silent after the tariff news. Buyers moved to the sidelines to digest the latest developments and seek a clearer picture of trends.

The tariff news had little to no impact on Southern Pine trading either before or after the announcement. A moderate seasonal increase in demand was evident.

Treaters replenished more actively in response to strengthening demand from box stores. Dimension lumber prices were mixed. Specialties, especially timbers, continued to outperform 2-inch. In the Inland market, response to the tariff news fell far short of overwhelming.

Most #2&Btr dimension prices fell, with reports spreading of some buyers aggressively seeking far steeper discounts. By contrast, prices in all other grades, as well as studs, were more stable.

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