When US President Donald Trump announced a spree of extra import tariffs in April 2025, New Zealand wood exporters breathed a sigh of relief. Wood products were temporarily exempt from the initial tariff wave due to a new trade investigation into US lumber imports.
Albeit temporary, the chief executive of the Wood Processors and Manufacturers’ Association, Mark Ross, still welcomed the tariff relief as a blessing. “We now wait for completion of the section 232 investigation as to what the future holds for imported New Zealand timber and lumber products entering the United States.”
The United States were New Zealand’s third-largest export market for forest products behind China and Australia, with USD 215 million of radiata pine heading to the States in 2024.
New Zealand’s overall exports to the US reached $5.40 billion in 2024, with wood and wood products accounting for $224 million of that total, making timber a key component of the bilateral trade relationship.
Radiata pine is especially prized by American buyers for its quality and appearance, making it a staple in both home construction and the DIY sector. New Zealand timber exporters offer Americans products that are not available elsewhere.
“Although the $US215 million is minor when compared to the total global imports of $US2.3 billion of timber and lumber products into the United States, this trade is valued by both the New Zealand producers and the American DIY customers.”
The exemption was granted pending the outcome of a formal Section 232 national security investigation, launched on March 2, 2025, to determine whether reliance on imported timber poses a threat to US national interests. This investigation, overseen by US Commerce Secretary Howard Lutnick, is expected to conclude in late November 2025.
Initially, timber was on the list of products facing a baseline 10% tariff. However, a concerted lobbying effort by powerful US industry groups, including the National Association of Home Builders (NAHB) and the American Building Materials Alliance, successfully convinced the Trump administration to reconsider.
These groups argued that imposing tariffs on imported timber would exacerbate the country’s housing affordability crisis, drive up building costs, and hinder disaster recovery efforts, especially in the wake of devastating wildfires in California.
US timber prices had already surged by more than 30% in recent months, and domestic supply chains were under significant strain. The American construction sector’s need for reliable, high-quality imported timber, particularly from New Zealand, was deemed too critical to risk further disruption.
“It’s a growth market, and there’s a shortage of lumber and timber products here for the home construction and the do-it-yourself market, and that’s what we feed into,” said Mark Ross.
New Zealand’s government and industry remain cautious. The WPMA did not submit a response to the Section 232 investigation, following official advice.
Trade and Investment Minister Todd McClay’s office has confirmed ongoing discussions with US trade counterparts to clarify the scope of product exemptions. For now, the industry is simply waiting for the outcome of the investigation, aware that the exemption could be revoked or made conditional depending on the findings.
The US market is particularly valuable for New Zealand’s timber sector as it seeks to diversify away from heavy reliance on China. Between 15 and 18 New Zealand mills regularly supply lumber, clear pine boards, and primed products to American buyers, who value the timber’s quality for both framing and finishing in residential construction.
The outcome of the section 232 investigation will determine whether New Zealand timber retains its tariff-free access to the US or faces new barriers. Possible scenarios include a continued exemption, the imposition of delayed or conditional tariffs, or targeted restrictions based on the investigation’s assessment of supply risk and industry resilience.
For now, New Zealand’s timber exporters have a temporary reprieve, but the industry remains on alert. As Mark Ross of the WPMA put it, “We are just going to have to wait. We don’t know.”
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