Struggling for Profits: Uncertain Trump Tariffs Stifle US Timber Exports
Tensions in Middle Eastern trade markets escalate due to the latest Israel-Iran clash and Trump's tariff measures, posing challenges for US trade in the region.
The U.S. sawmill industry is reeling from the uncertainty surrounding tariffs initiated by President Trump, causing foreign buyers to shy away from purchasing American lumber. Mike Cardin, Chief Manager of Cardin Forest Products, shared his concerns about the escalating conflict potentially hindering the American lumber industry's growth.
According to Cardin, the uncertainty over possible tariffs forced his sawmill to change its strategies. Before assuming office, the sawmill shipped lumber globally; however, in recent times, Cardin has experienced a decrease in exports to the Middle East, with fewer orders coming in.
"If it keeps escalating, there won't be any orders coming in the next, who knows how long," Cardin cautioned.
The Trump Administration is conducting an investigation that'll determine whether imports threaten the country's national security. The findings will shape whether Trump applies higher tariffs to timber imports. Meanwhile, foreign sales for U.S. sawmills have slowed down due to tariff-related anxiety.
"If there's some constant, then people will buy. They can adjust the pricing. Right now, no one knows what's going to happen. So, it's shut down that export market pretty much. At least it's put it on hold," Jarrod Cardin, Controlling Member of Cardin Forest Products, said.
Iran's conflict with certain Middle Eastern countries has global trade on edge, especially since the Strait of Hormuz and the Persian Gulf could face navigational challenges. Jakob Larsen, BIMCO's Chief Safety & Security Officer, warned that if Iranian attacks on shipping escalate, it will likely cause a reduction in the number of ships transiting through the Strait of Hormuz. This maritime chaos could further impact U.S. sawmills, already grappling with tariff uncertainties.
The U.S. International Trade Commission reported that China was the largest importer of U.S. lumber in 2024, exceeding $700 million. However, the National Hardwood Lumber Association noted a sharp decline in sales to China and other countries starting in 2017. Inflation-related costs have increased the price of wood products by about 30% since prior to the pandemic, putting additional pressure on U.S. sawmills. The race against time is on, as the outcomes of both the tariff investigation and the Middle Eastern conflict will significantly impact the future of the U.S. timber industry.
The escalating trade tensions, triggered by President Trump's tariffs, are causing anxiety in the markets, potentially affecting the growth of the American lumber industry. This uncertainty has resulted in a decrease in foreign sales for U.S. sawmills, as highlighted by Jarrod Cardin, the Controlling Member of Cardin Forest Products, who noted that it has put the export market on hold, further complicated by the geopolitical issues in the Middle East. Meanwhile, inflation-related costs have contributed to a 30% increase in the price of wood products since pre-pandemic times, putting further pressure on U.S. sawmills.
