The 10% tariff imposed by US President Donald Trump is a setback for New Zealand forestry, which is the country's third-biggest export. Photo / NZPA
The 10% tariff imposed by US President Donald Trump is a setback for New Zealand forestry, which is the country's third-biggest export. Photo / NZPA
A 10% tariff on all softwood lumber and timber imported from New Zealand to the US will have “significant financial repercussions” for the forest industry, the NZ Forest Owners Association says.
US President Donald Trump said this week the tariff was the outcome of the Section 232 Investigation aimed atdetermining the effect imports of timber, lumber and their derivative products have on the US supply chain and national security.
The new tariff will take effect from October 14.
NZ Forest Owners Association (NZFOA) chief executive Elizabeth Heeg said the tariff would create immediate challenges for growers and wood processors.
“These new tariffs are disruptive for New Zealand’s forest sector at a time when confidence is vital,” Heeg said.
NZFOA chief executive Elizabeth Heeg. Photo / Supplied
“They add uncertainty and risk for exporters who are working hard to build long-term, sustainable supply chains benefiting both countries,” she said.
The US is New Zealand’s largest export market for sawn timber and sleepers and the second-largest for panels.
In 2024, the US imported about $370 million worth of radiata pine products from New Zealand, making it this country’s third-largest export market for value-added forest products.
“Bilateral trade between New Zealand and the US benefits both parties,” Heeg said.
“Our products help fill supply gaps in the US housing and construction sectors, particularly where domestic alternatives are limited.
“While this tariff is less severe than the 50% rate first considered by the US Government, it still represents a barrier to continued growth in this market for growers, processors and exporters.”
The NZFOA says it will continue to work alongside its members, industry partners and government agencies to respond to the change, including actively seeking to diversify and expand into new markets.
Forestry is New Zealand’s third-biggest export.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
