Following a period of robust performance in 2021 and 2022, the U.S. housing sector has since moved at a slower pace. Over the last three years, key indicators, such as sales of existing homes, new residential construction, and home improvement spending, have remained weak. For timberland investors, this matters, as timber markets are structurally tied to the housing sector. More than 70% of U.S. lumber demand is driven by new home building or home improvement.

Over the past month, duties on Canadian softwood lumber imports into the United States have increased significantly.

A fresh assessment of the current trade environment and how it could impact wood product markets.

On Tuesday, March 4, 2025, the Trump Administration imposed 25% tariffs on imports from Mexico and Canada. Given that one-quarter of all the softwood lumber consumed in the United States comes from Canada, U.S. timberland investors are naturally interested in how this could impact their assets.

An investor with timberland investments, or with plans to make timberland investments, may be wondering how the incoming Trump presidency will impact the asset class. The potential effects are numerous.