{"id":22778,"date":"2024-12-19T14:39:14","date_gmt":"2024-12-19T04:39:14","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=22778"},"modified":"2024-12-19T14:39:16","modified_gmt":"2024-12-19T04:39:16","slug":"report-trumps-tariffs-will-add-billions-to-cost-of-timber-products","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/report-trumps-tariffs-will-add-billions-to-cost-of-timber-products\/","title":{"rendered":"Report: Trump’s Tariffs Will Add Billions to Cost of Timber Products"},"content":{"rendered":"\n

Just how much will the price of lumber go under Trump’s tariff plan? That is the question posed by the Peterson Institute of International Economics, which revealed that the president-elect’s plans to tariff Chinese, Canadian and Mexican goods “on day 1” will add billions to the price of timber products.<\/p>\n\n\n\n

According to a new analysis prepared by the institute, tariffs of up to 60% on Chinese imports, 25% on USMCA partners like Canada and Mexico, and 10% on all other nations will have significant implications for the $50 billion trade in imported wood products: “That’s because there is no such thing as a free trade tax,” according to a report prepared by Julieta Contreras, Mary Lovely and Jing Yan, who warned that low-income Americans would be hit hardest by the tariffs, which will add at least $25 billion to the cost of timber imports alone.<\/a><\/p>\n\n\n\n

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Image:<\/strong>\u00a0Peterson Institute for International Economics

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“A tariff of 60% on China would be a major shock to international goods markets,” the economists said, adding that after the 2018\u201319 China-US trade war, “62% of US imports from China are subject to an average tariff rate of 16%, far below the rate promised by Trump on the campaign trail.”<\/p>\n\n\n\n

The report also revealed that wood products, which are subject to near-zero tariff rates across the vast majority of countries where the US has free trade agreements, will be amongst the industries most exposed to the tariffs: The tariff on Chinese furniture and plywood will jump<\/a> from 16.2% to 60%, while tariffs on more than US $3 billion worth of Canadian softwood lumber jumping from 14.54% to 25%.<\/a><\/p>\n\n\n\n

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Image:<\/strong>\u00a0Peterson Institute for International Economics
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On Monday<\/a>, Wood Central revealed that China – which trades more than US $10 billion in forest products with the United States – was looking to “Trump proof” its economy ahead of a potential trade war. Announced last week as part of the Central Economic Work Conference, CCP officials have pledged to stabilise the stock and real-estate markets\u2014which have seen lumber and log imports drop over the past 12 months<\/a><\/em>\u2014while also preparing for “external shocks,”\u00a0including potential trade wars with the incoming Trump administration<\/a><\/em>\u00a0and\u00a0Russia.<\/a><\/em><\/p>\n\n\n\n