Lumber prices fell to their lowest level of 2025 after sliding more than 20% in August, pressured by excess supply built up ahead of higher duties on Canadian imports.
Market analyst Matt Layman, publisher of Layman’s Lumber Guide, told WSJ that the industry is seeing “a wall of wood that must be liquidated,” citing speculative stockpiling from mills to local dealers. He said the current glut is unlike anything in his four-decade career.
The White House is considering additional tariffs on imported lumber. Such measures would come on top of the duties on Canadian softwood, which climbed to about 35% this year from 15% in 2024. Despite the higher costs, Canada still provides roughly 24% of the lumber used in the U.S.
Prices peaked at a three-year high on August 1, just before the duty hike, and have fallen steadily since. Producers are banking on lower interest rates to revive homebuilding and remodeling demand.
