About 90% of New Zealand radiata pine bound for the United States—prized in the DIY and homebuilding and sold in Home Depot, Lowe’s and Menards—will be slapped with a new 10% tariff, after President Trump made a final determination in a long-running national security probe into lumber imports yesterday. Wood Central understands that the decision will further squeeze margins on trade across the Pacific, which has increased by more than 30% over the past five years, and has emerged as a key lifeline post-pandemic.
“We currently export around $370 million of radiata pine products from New Zealand to the United States, making the U.S. our third largest export market for value-added forest products behind China and Australia,” according to Mark Ross, the CEO of the Wood Processors and Manufacturers Association (WPMA), who said the new tariff is nonethless five times smaller than the tariffs slapped on other construction materials including steel, aluminum and copper. “The 10% tariff, which is a relief after a 50% tariff was touted, will mean additional costs being added to our exporters’ bottom line that can either be taken on board, shared or paid for by their U.S.-based customers.”
Wood Central understands that the new tariff applies to the vast majority of softwood timber, lumber, and derivative products imported from New Zealand, and ranges from clear-grade mouldings to primed sidings. At the same time, U.S. builders and DIY retailers warn that the new tariffs will be passed on to retail prices. “A lot of what we buy from New Zealand we can’t get elsewhere easily, so expect we may have to pay extra, resulting in higher prices for the consumer,” one industry buyer said.
Looking ahead, Ross said the WPMA will press Wellington and Washington for further relief and alternative market-access solutions. “As we absorb this tariff information and move forward, WPMA will continue to work closely with our members, the wider forestry supply chain and government to develop options for navigating the impact on our wood industry, and develop ways that we can retain and grow our high-value New Zealand radiata pine export market within the United States.”
- For more on how the new tariffs are aimed at bolstering the United States National Security, click here for Wood Central’s special feature – “Trump’s 10% Lumber Tariffs to Boost US Defense and Revive Mills” published yesterday.
