The peak body for Australia’s $24 billion forest products industry is calling on federal and state governments to recognise the strategic importance of their own timber industry, following the Trump Administration’s proclamation this week imposing a 10 per cent tariff on imported softwood timber and a 25 per cent levy on upholstered wooden furniture and cabinets.
In its proclamation, the White House warned that “present quantities and circumstances of wood product imports are weakening our economy, resulting in the persistent threats of closures of wood mills and disruptions of wood product supply chains, among other things, and diminishing the utilization of production capacity of our domestic wood industry,” and that “wood products serve as essential inputs across multiple sectors, supporting national defense, critical infrastructure, economic stability, and industrial resilience in the United States.”
It comes as Diana Hallam, CEO of the Australian Forest Products Association (AFPA) said the U.S. action mirrors challenges confronting Australia’s forestry industry, where imports now account for around a quarter of construction timber and can swell to 40 per cent during boom periods. “It’s important that the federal and state governments here recognise that our forestry and forest products sector is just as important to Australia as the American industry is to the United States,” Hallam said. “The threats the Americans face from imports are akin to what our industry faces from imports.”
Hallam noted that, despite a rebound in new home starts over the past year, domestic timber sales have failed to keep pace, with imported products undercutting local manufacturers. “While we aren’t calling for tariff increases on imported timber and wood products, we do believe Australian consumers should be better informed about what they’re purchasing,” she said. “That’s why we advocated for country-of-origin labelling ahead of the 2025 federal election, alongside other measures to strengthen local industry.”
The supply chain is also working with the Australian Government’s International Trade Remedies Forum to monitor the ripple effects of the U.S. tariffs, with Hallam pointing out that many Australians would be surprised to learn that timber for houses is increasingly sourced from Latvia, Lithuania and Estonia, despite Australia’s capacity to supply its own market. “The Trump Administration’s proclamation for the United States’ own timber sector is a timely reminder of the importance that our own local forestry and timber industry has for Australia’s sovereign capability,” Hallam said.
- To learn more about Trump’s new tariffs and their impact on the global supply chain for timber and furniture, click here for Wood Central’s exclusive coverage.
