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US President Donald Trump’s tax threat could further motivate Canadian tree producers to move to the southern US border while efforts to accelerate new markets, industry experts said.
The taxes are the latest in the four decades of conflict between neighbors on soft trees, which are used in construction, furniture and paper production.
Taxes on Canadian trees can reach 40 percent if the current tasks are 14.54 percent, and Trump’s proposed tax will be increased by 25 percent. Trump has paid taxes on goods fit with the US-Mexico-Canada agreement until April
Washington claims that Canadian tree products have been supported and sold in the United States below the fair market value. Canada has successfully challenged these tasks under the provisions of the conflicts of multilateral trade agreements.
Canada provides about a quarter of the US trees and has moved several Canadian factories to South America over the past decade, which have been drawn by cheap and available trees and its availability on private land, unlike crown land, which uses strict harvest policy.
“Equality in the cost of log and their availability are the main engines here, but Canadian investment in the region has certainly been part of the motivation for transportation, which avoids the effects of the tasks,” said Dastein Jalbert, a senior economist, Wood Economics.
For example, Cannford has been closed in Colombia, referring to obstacles that can access economic fibers, damage, weak markets and US taxes.
About 70 percent of the CANFOR’s affairs are now outside Canada, while 80 percent of Peer Weyerhaeuser’s production is now in the United States, they said in their latest quarterly ties.
Canfor, Weyerhaeuser and several Canadian companies refused to comment on this story.
“In 2004, only two carpentry factories had a Canadian manufacturing owner. We have more than 50 people today,” said Kylie Litl, head of the New York-based New York-based company.
“Canadian companies now produce more than one-third of the largest scale of the largest production zone in the United States – South America.
Fast Martis said South America had passed through soft trees in Canada in 2022 and would continue to expand the decade.
Colombia’s decline in halves since 2017 has drawn the Canadian market share.
“For years, it has chosen producers to open miles in South America because of challenges in Canada,” said Morningstar analyst Spencer Lieberman.