Balancing Trade and Industry Growth Amid Tariffs

Tariffs introduce significant uncertainty to our industry. A recent New York Post poll indicates that 70% of Americans believe President Donald Trump has fulfilled his campaign promises. Regardless of individual opinions, he has acted on many commitments, including revisiting trade agreements between the U.S. and other countries. However, our industry still bears the scars from the previous trade war during President Trump’s first term.

On February 1st, President Trump signed executive orders imposing 25% tariffs on products imported from Canada and Mexico and 10% on selected products from China. He acknowledged that Americans may feel the pain from his tariffs, but it will be worth the price to secure U.S. interests. Our industry, however, is concerned about enduring further hardships.

The domestic hardwood lumber industry relies heavily on free trade, with approximately 50% of our furniture-grade hardwood lumber produced in the United States exported globally. During the 2018 trade war, our industry suffered as our products became targets of retaliatory tariffs, leading to a swift market decline. Even years after that trade war ended, hardwood lumber exports to China remained at about 50% of their previous levels. 

As of this writing, there is a 30-day pause on implementing the tariffs with Canada and Mexico. However, this delay has led to heightened tensions between the U.S. and its neighboring trading partners. Concerns over trade policies have resulted in strained relations, discussions of potential boycotts, and public expressions of discontent. These challenges reflect the complexities of international trade, and both sides are working toward agreements that address economic concerns while maintaining strong partnerships.

The National Hardwood Lumber Association (NHLA) has received numerous inquiries from media outlets worldwide seeking our perspective on the economic impacts of these tariffs. In our responses, we strive to represent our diverse membership, recognizing that some view tariffs as a negotiation tool while others value our long-standing partnerships with Mexico and Canada. The term “fluid” frequently arises in our discussions, reflecting the rapidly changing situation. Rest assured, the NHLA remains actively engaged.

We are collaborating with the Hardwood Federation to protect our industry from the potentially harmful effects of tariffs. The Federation is proposing a $450 million relief package to mitigate potential losses due to the enactment of tariffs. Stay informed about tariffs and the work your association is doing by subscribing to our newsletters and visiting our website, nhla.com, for the latest news from the NHLA. You can also connect with the Hardwood Federation at hardwoodfederation.com.

Just as many strive to strengthen America, we hope that together, we can strengthen American hardwoods in the coming years.

Bucky Pescaglia
NHLA Chairman | Missouri-Pacific Lumber Co., Inc.