Feed aggregator
Are reciprocal tariffs against the US the way forward
Over the past decade, from 2015 to 2024, Australia’s trade in logs and wood products both imports and exportshas experienced notable shifts, particularly during the COVID-19 pandemic years. Sources: Timberbiz, FWPA’s Statistics & Economics Program Despite these fluctuations, our primary trading partners for softwood and hardwood have remained consistent. Key countries such as China, New Zealand, and several Southeast Asian nations, including Malaysia and Indonesia, continue to play significant roles in Australia’s timber trade. In this context, attention is now toward the United States, especially in light of recent policy changes. Under the US laws in the section 232 of the Trade Expansion Act of 1962, the wood products industry has been designated as a critical manufacturing sector essential to the national security, economic strength, and industrial resilience. This industry plays a vital role in key downstream, including construction. Therefore, the new tariff is viewed as a protective measure in the domestic wood supply chain against imported products. In the new tariff measures introduced by the US government, Australia faces a 10% tariff on all exported goods to the US, including logs and wood products. This policy presents a significant challenge to Australian exporters and raises questions about reciprocal trade measures. Given the impact of this tariff, a key policy question arises: Should Australia respond by imposing an equivalent 10% tariff on logs and wood products imported from the United States? This decision will require careful consideration of trade balances, the broader implications for the timber and forestry industries, and Australia’s long-term economic relationship with the US. The tables below summarise export and import activities in the last 10 years. Key points: Logs and wood products exported from Australia to the US are not substantial, with an average value of AUD10 million and less than one percent of the total export. In terms of imports, some products from the US to the Australian market include builders’ joinery, carpentry wood, plywood, and veneer. In the last ten years (2015-2024), Australia imported around AUD130 million from the US. However, the US import trend has been declining over the last ten years, with the proportion of US imports out of all imports dropping from 7% in 2015 to 4% in 2024. Overall, the Australian trade balance of logs and wood products with the US has consistently shown a deficit over the past ten years, although this trend is declining from approximately $137 million in 2015 to around $85 million in 2024. The 10% tariff imposed by the United States on Australian wood products is expected to have several implications for trade dynamics and consumer markets. For the US domestic market, this tariff will likely result in higher prices for wood products sourced from Australia, as the additional cost is anticipated to be passed on to end consumers. This could pressure the US housing and construction sectors, particularly for projects that rely on imported timber to supplement the domestic supply. Conversely, any reciprocal move by Australia, such as imposing a matching 10% tariff on wood and log imports from the US, would similarly raise prices for Australian consumers. However, the impact of such a policy would be disproportionate. This is primarily due to the significant imbalance in trade value: Australia imports more than ten times the value of wood products from the United States than it exports to them. As a result, Australian industries and consumers would likely bear a more significant economic burden if a reciprocal tariff were implemented.
Categories: Forest Products Industry
Queensland leaders meet to shape future timber supply
The Crisafulli Government’s regeneration of the timber industry is gaining momentum as Queensland leaders meet to shape the State’s future timber supply. For the first time, the Timber Supply Chain Ministerial Roundtable has met to progress the Crisafulli Government’s election commitment to grow the industry through a timber action plan. Source: Timberbiz The Queensland Future Timber Plan (QFTP) will ensure the State has access to local timber required to build one million homes by 2044. The Roundtable includes representatives from Timber Queensland, AgForce, Queensland Farmers’ Federation, the Housing Industry Association, Forestry Australia, HQPlantations, Australian Forest Contractors Association and leading timber companies. The meeting marks a fresh start for the timber industry which has spent the last decade subjected to Labor’s anti-timber and anti-forestry agenda, which was full of hollow promises. The former Labor Government failed to deliver its timber action plan, which they committed to in 2019 and was meant to be completed in 2021 it resulted in a timber shortage in the middle of Labor’s Housing Crisis. The Roundtable will support the Crisafulli Government’s 25-year blueprint for primary industries, which aims to increase the State’s primary industries production output to $30 billion by 2030. Minister for Primary Industries Tony Perrett said the Crisafulli Government is up to the task of getting the timber industry back on track and this meeting is a critical first step in delivering a QFTP. “We’re serious about securing Queensland’s timber future, and that starts by working directly with the people who grow, harvest and process our timber,” Minister Perrett said. “This is about protecting jobs, building regional economies, and making sure we have the materials needed for the homes and infrastructure of tomorrow. “The Roundtable will provide practical advice on how we can meet growing construction demand while supporting innovation and sustainability across the supply chain. “This is a landmark opportunity to rebuild future of one of Queensland’s most important and environmentally sustainable industries starting with the people who know it best.” CEO of Timber Queensland Mick Stephens welcomed the establishment of the Roundtable and the opportunity for industry to provide direct input into the QFTP. “The timber industry already plays a key role in ensuring we have local sustainable materials for housing and construction and through this plan we aim to unlock the barriers and opportunities to further increase the supply of timber to help meet the Government’s target of 1 million new homes over the next two decades,” Mr Stephens said. “Investment security for both the plantation softwood and native forestry sectors will be critical to bolster growing, harvesting and processing activities across the supply chain.” The Roundtable will operate for 12 months in line with the QFTP development timeline.
Categories: Forest Products Industry
General Motors Company (GM) Reportedly Seeks to Overturn California’s Electric Vehicle Mandate
Categories: Forest Products Industry
FDA Clears Novavax, Inc. (NVAX)’s COVID-19 Vaccine with Usage Restrictions
Categories: Forest Products Industry
Treasury yields rise, dollar down amid fiscal concerns after US downgrade
Categories: Forest Products Industry
The Wall Street Journal’s Ranking of Top Board Directors: How We Did It
Categories: Forest Products Industry
What Makes a Great Board Director? It’s Hard to Define, but It Has Rarely Been More Crucial
Categories: Forest Products Industry
Stock market today: Dow, S&P 500, Nasdaq futures sink after Moody's downgrades US credit rating
Categories: Forest Products Industry
EOG Resources, Inc. (EOG) Awarded Oil Exploration Concession for UAE Shale Block
Categories: Forest Products Industry
Occidental Petroleum Corporation (OXY) Joins Hands with ADNOC to Develop Texas Direct Air Capture Hub
Categories: Forest Products Industry
Exxon Mobil Corporation (XOM) Partners with the UAE to Expand the Country’s Oil Production Capacity
Categories: Forest Products Industry
Rite Aid to Sell Majority of U.S. Pharmacy Operations to Rivals, Including CVS Health Corporation (CVS)
Categories: Forest Products Industry
Buffett to sit alongside board members at 2026 Berkshire meeting, won't appear on stage, report
Categories: Forest Products Industry
The Coca-Cola Company (KO) Launches Fizzion: A New AI Tool to Boost Creativity Worldwide
Categories: Forest Products Industry
Kenvue Inc. (KVUE) Emerges as Hedge Fund Favorite with Fresh Q1 2025 Buys
Categories: Forest Products Industry
Midpoint of Trump Tariff Hiatus to Reveal Increasingly Unsettled World
Categories: Forest Products Industry
Pages
