Lumber futures opened at $630 on Monday on the Chicago Mercantile Exchange, rising sharply from the previous close of $592 before settling at $605, up $13 or 2.2%. The surge reflects market concerns over U.S. tariffs on Canadian imports, set to take effect Tuesday. The tariffs include a 25% levy on Canadian goods, a 25% levy on Mexican goods, and a 10% levy on Chinese imports. President Trump and Mexican President Claudia Sheinbaum later announced an agreement to delay the tariffs on Mexican goods for one month.
Canada exported 26.4 million m3 of lumber to the U.S. between January and November 2024, valued at $5.2 billion. Colorado-based lumber broker Stinson Dean said to WSJ that the tariffs will raise Canadian sawmill costs by 25%, likely causing closures and reducing U.S. lumber supplies, which could drive up home construction costs.
