Tariffs averaging 20% on Canadian lumber (processed wood) imports to the US have come into effect as at 1 May 2017. This has come at a time when US demand continues to rise, driven by the construction industry. US consumers are expected to source more lumber from overseas, including Europe, which is likely to result in lumber being diverted from the UK (which imports 80% of its annual timber consumption), which is positive news for UK forest owners. Overseas imports of lumber to the US have increased every year since 2012, but in 2016 were still only 24% of the record high volumes in 2005, indicating the potential for a rerating – particularly now that Canadian imports are far less attractive.
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