President Donald Trump signed an Executive Order on 1 March 2025 ordering an investigation to determine whether imports of timber, lumber and their derivatives products threaten to impair United States (US) national security. Citing Section 232 of the Trade Expansion Act, the Executive Order directs the Secretary of Commerce to initiate an investigation and issue a report within 270 days after consulting with the Secretary of Defense and heads of other relevant executive departments and agencies to assess the national security risks associated with the import dependency of timber, lumber and their derivative products in the wood products industry. These materials are a critical part of manufacturing in the US, playing an important role in downstream civilian industries that include construction.

The Executive Order indicates that although the US has sufficient timber resources where the current softwood lumber industry has a production capacity to supply 95% of the country's 2024 softwood consumption, the country has been a net importer of the raw material since 2016. The concern is that the import of timber, lumber and their derivative products are creating vulnerabilities in the supply chain.

Part of the investigation involves an assessment of factors in 19 USC 1862(d) that are labeled as "domestic production for national defense; impact of foreign competition on economic welfare of domestic industries." Other relevant factors include:

• Timber and lumber sector current and projected demand
• Ability of domestic timber and lumber production to meet US demand
• Ability of foreign supply chains, particularly major exporters, to meet US timber and lumber demand
• Foreign government subsidies and predatory trade practices affecting US timber, lumber and derivative product industry competitiveness
• US ability to increase its domestic timber and lumber capacity to reduce reliance on imports
• Whether national security measures such as tariffs and quotas are needed, given the impact of current trade policies on domestic timber, lumber and derivative product production

When the report is complete, the Secretary of Commerce will deliver its findings on:

• Any perceived threat to national security from US dependence on timber, lumber and derivative product imports
• Recommendations on mitigation strategies that include potential tariffs, export controls or incentives for increased domestic products
• Policy recommendations to strengthen the country's timber and lumber supply chain through use of strategic investments and permitting reforms

Also on 1 March, President Trump signed an Executive Order aimed at increasing domestic timber production and improving forest management. This Executive Order seeks to streamline federal policies to enhance timber production, reduce wildfire risks and decrease reliance on imported timber. It calls for updated agency guidance to facilitate increased timber production and reduce delivery times, while cutting red tape to boost timber sales from public lands. The Order also promotes quicker approvals under the Endangered Species Act to prevent delays in forestry projects.

Action for businesses

Given the Department of Commerce's investigation into timber, lumber and derivative product imports, businesses must take proactive steps to ensure compliance if new requirements are implemented. The following actions could help businesses prepare for and adapt to these regulatory changes:

• Review import data to understand potential impact and liabilities.
• Evaluate or diversify supply chains for timber, lumber and derivative products to help mitigate risks associated with import reliance.
• Explore sourcing timber, lumber and derivative products domestically.
• Prepare contingency plans to address potential disruptions in timber, lumber and derivative product supply due to potential changes in trade policies and market conditions.
• Monitor any further updates or changes to the regulations and adjust processes as needed.