Lumber futures rebounded to around $650 per thousand board feet, nearing the two-and-a-half-year high of $658 touched earlier this month as escalating U.S. tariff threats on steel, aluminum, and dairy—along with the prospect of sharply higher auto tariffs—stoked fears of further trade restrictions, reversing the recent plunge. The renewed trade war tensions have heightened concerns that lumber could be the next target, prompting traders to reassess supply risks. Earlier, prices had dropped to around $600 after President Trump delayed a 25% tariff on Canadian softwood for the second time, temporarily easing supply concerns. The proposed levy, which would raise total duties to as much as 52%, could significantly strain North American production and push construction costs higher. However, the latest escalation in the trade war has reversed sentiment, with traders wary that lumber could still face new restrictions, driving speculative buying.
8 Likes