TARIFFS ON LUMBER: What you need to know about the Section 232 investigation on lumber imports.
On March 1, 2025, President Trump signed an executive order (“EO”) titled “Addressing The Threat To National Security From Imports Of Timber, Lumber.” The EO instructs the Secretary of Commerce to begin an investigation under Section 232 of the Trade Expansion Act on imports of timber, lumber, and their derivative products (which includes paper products, furniture, and cabinetry). By November 26, 2025, the Secretary of Commerce will be required to submit the findings of his investigation.
What is a Section 232 Investigation?
Article 1 of the U.S. Constitution gives Congress the power to impose tariffs. This power, however, can and has been delegated to executive agencies, under the authority of the President. Section 232 of the Trade Expansion Act of 1962 (“Section 232”) (19 U.S.C. §§ 1862-1864) is one such delegation.
Section 232 is used to address trade related threats to national security, rather than to the U.S. economy. Section 232 is relatively straightforward. The Secretary of Commerce handles investigations under Section 232. Investigations can be initiated by interested parties, any department or agency head, or by the Secretary of Commerce sua sponte. During the investigation, the Secretary of Commerce must consult with the Secretary of Defense and other officers of the United States, and hold a period for notice and comment by the public. The Secretary of Commerce has 270 days to determine whether the imports at issue are harming national security.
If the Secretary of Commerce determines that the imports are harmful to national security, the President then has 90 days to review the determination. At the end of the 90 day period, the President must either reject the Secretary’s determination, or identify what steps will be taken to remedy the harm. The remedy is left solely to the discretion of the President, meaning that tariffs are a possibility. If the President agrees with the Secretary, he then has 15 days to implement the remedy.
Section 232 was previously successfully used by the first Trump Administration to impose a 25% tariff on steel and aluminum imports.
Investigation Into Lumber, Timber, and Derivative Products
This new EO means that an investigation into lumber imports is likely just around the corner. The Secretary will conduct research to determine whether U.S. national security is currently being harmed by the importation of lumber into the U.S. During the investigation, there will be a period for notice and public comment. Lumber product manufacturers, importers, purchasers, and any other interested party will be allowed to participate in the process by submitting arguments, evidence, and data.
Before November 26, 2025 at the end of the investigation, the Secretary may find that lumber imports are harming U.S. national security. In that case, the President would have the authority to adopt a remedy within 90 days. Based on the policy preferences of the current administration, the remedy would most likely be tariffs.
Conclusion
In summary, the March 1 EO could mean that tariffs on foreign lumber are on the way. However, the process may be drawn out until November 26 at the latest. The investigation will include notice and comment from any interested parties, giving members of the lumber community a valuable platform to potentially influence the outcome of the investigation. Because an affirmative determination could mean more tariffs, its important to watch the ongoing investigation closely.
If you believe that your company may be an interested party to the Section 232 lumber investigation, Liang + Mooney, PLLC can help. Feel free to contact us to schedule a consultation.