Addressing the Threat to National Security from Imports of Timber, Lumber
President's order directs the Secretary of Commerce to investigate the national security implications of imported timber, lumber, and their derivative products.
The order cites vulnerabilities in the domestic wood supply chain, emphasizing the industry's critical role in national security and economic strength.
The investigation will assess various factors, including domestic production capacity, foreign competition, and government subsidies.
This action aims to ensure a reliable and secure domestic supply chain and may lead to measures such as tariffs or quotas.
Arguments For
National Security: The order argues that vulnerabilities in the domestic wood supply chain pose a threat to national security, impacting both civilian construction and military needs. This is supported by referencing military spending on construction and the use of wood products in military applications.
Economic Strength: The order highlights the importance of the wood products industry to the US economy and its role in downstream industries like construction. It aims to protect domestic jobs and strengthen the US manufacturing base.
Fair Trade: The order suggests unfair subsidies and predatory trade practices from foreign competitors are harming the domestic timber and lumber industry. An investigation could provide evidence of these practices and justify protective measures.
Domestic Resource Utilization: The order points out that the US has ample timber resources and the capacity to meet domestic demand, yet it remains a net importer of lumber, suggesting potential market inefficiencies or foreign market manipulation.
Arguments Against
Economic Impact for Consumers: Tariffs or quotas resulting from the investigation could increase the price of wood products, impacting consumers and potentially increasing the cost of housing and other goods reliant on wood products.
International Trade Relations: Actions taken to restrict imports might strain international relationships with countries exporting timber and lumber, potentially leading to retaliatory measures or trade disputes.
Potential for Inefficiency: Increasing domestic production without addressing underlying market issues might lead to higher costs and lower efficiency compared to using competitively priced imports.
Limited Scope of Analysis: The investigation's focus on national security may not fully account for the broader economic, environmental, and social impacts of timber and lumber policies.
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862) (Trade Expansion Act), it is hereby ordered:
This is the introductory statement establishing the legal authority for the presidential order.
It states the order is based on the President's constitutional powers and the Trade Expansion Act of 1962.
Section 1. Policy. The wood products industry, composed of timber, lumber, and their derivative products (such as paper products, furniture, and cabinetry) is a critical manufacturing industry essential to the national security, economic strength, and industrial resilience of the United States. This industry plays a vital role in key downstream civilian industries, including construction.
The United States faces significant vulnerabilities in the wood supply chain from imported timber, lumber, and their derivative products being dumped onto the United States market.
The United States has ample timber resources. The current United States softwood lumber industry has the practical production capacity to supply 95 percent of the United States’ 2024 softwood consumption. Yet, since 2016 the United States has been a net importer of lumber.
Wood products are a key input used by both the civilian construction industry and the military. Each year, the United States military spends over 10 billion dollars on construction. The military also invests in innovative building material technology, including processes to create innovative wood products such as cross-laminated timber. The procurement of these building materials depends on a strong domestic lumber industry and a manufacturing base capable of meeting both military-specific and wider civilian needs.
It is the policy of the United States to ensure reliable, secure, and resilient domestic supply chains of timber, lumber, and their derivative products. Unfair subsidies and foreign government support for foreign timber, lumber, and their derivative products necessitate action under section 232 of the Trade Expansion Act to determine whether imports of these products threaten to impair national security.
Section 1 outlines the policy rationale for the order.
It asserts the wood products industry is crucial for national security and economic reasons.
The section highlights vulnerabilities in the US wood supply chain caused by imports, despite the nation having sufficient domestic resources.
The reliance of the military on wood products is stressed, linking the sector directly to national security issues.
The policy declaration signals a need to address threats to national security posed by unfair foreign competition.
Sec. 2. Investigation. (a) The Secretary of Commerce shall initiate an investigation under section 232 of the Trade Expansion Act to determine the effects on the national security of imports of timber, lumber, and their derivative products.
(b) In conducting the investigation described in subsection (a) of this section, the Secretary of Commerce shall assess the factors set forth in 19 U.S.C. 1862(d), labeled “Domestic production for national defense; impact of foreign competition on economic welfare of domestic industries,” as well as other relevant factors, including:
(i) the current and projected demand for timber and lumber in the United States;
(ii) the extent to which domestic production of timber and lumber can meet domestic demand;
(iii) the role of foreign supply chains, particularly of major exporters, in meeting United States timber and lumber demand;
(iv) the impact of foreign government subsidies and predatory trade practices on United States timber, lumber, and derivative product industry competitiveness;
(v) the feasibility of increasing domestic timber and lumber capacity to reduce imports; and
(vi) the impact of current trade policies on domestic timber, lumber, and derivative product production, and whether additional measures, including tariffs or quotas, are necessary to protect national security.
Section 2 mandates an investigation by the Secretary of Commerce into the national security implications of imported wood products.
It specifies the scope of the investigation: the Secretary must consider factors like domestic production capacity, foreign supply chains, the impacts of subsidies and predatory trade practices, and the feasibility of increasing domestic production to reduce reliance on imports.
The investigation will determine the necessity of additional measures like potential tariffs or quotas.
Sec. 3. Required Actions. (a) The Secretary of Commerce shall consult with the Secretary of Defense and the heads of other relevant executive departments and agencies as determined by the Secretary of Commerce to evaluate the national security risks associated with imports of timber, lumber, and their derivative products.
(b) No later than 270 days after the date of this order, the Secretary of Commerce shall submit a report to the President that includes:
(i) findings on whether imports of timber, lumber, and their derivative products threaten national security;
(ii) recommendations on actions to mitigate such threats, including potential tariffs, export controls, or incentives to increase domestic production; and
(iii) policy recommendations for strengthening the United States timber and lumber supply chain through strategic investments and permitting reforms.
Section 3 details the required actions.
The Secretary of Commerce must consult with other relevant agencies to assess national security risks.
Within 270 days, a report must be submitted to the President.
This report will include findings on whether imports threaten national security, recommendations to mitigate such threats (including potential tariffs or export controls), and policy recommendations for strengthening the domestic supply chain.
Sec. 4. Definitions. As used in this order:
(a) The term “timber” refers to wood that has not been processed.
(b) The term “lumber” refers to wood that has been processed, including wood that has been milled and cut into boards or planks.
Section 4 provides definitions for the key terms "timber" and "lumber" used throughout the order, clarifying their meanings within the context of the investigation.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Section 5 includes general provisions.
Subsection (a) clarifies that this order doesn't supersede existing laws or the authority of other government entities.
Subsection (b) states the implementation is subject to existing laws and budget approvals.
Subsection (c) is a standard clause stating the order does not create legally enforceable rights.