By RNZ
News that United States President Donald Trump has imposed a tariff of 10% on imported timber has come as a relief to the industry, which expected a higher figure.
Under the order, US importers would need to pay 10% for foreign softwood lumber and timber, and 25% for foreign timber furniture.
Wood Processors and Manufacturers Association CEO Mark Ross said it was a relief as the industry had thought it would be higher.
“We’ve been working through the essential impact of a tariff on our products since March this year, so it wasn’t a shock because we were, at one point, expecting a 50% tariff,” Ross said.
“So 10% is a bit of relief.
“It is still going to have a financial impact on the wood processing industry in New Zealand.
“We’re exporting $380 million in products to the United States, so if you look at 10% of that, you’re looking at a figure of around $40 million that will be added on in tariffs.”
Ross said his organisation was working with exporters to work out how to handle the extra costs.
The tariffs would come into force on October 14.
“So we’ve got a couple of weeks just to work through that and to make sure that the exporters are geared up to deal with that tariff.
“If they have got boats on the water at the time, they will be affected and impacted by that tariff.”
Ross said the United States was New Zealand’s third-largest export market and continued to grow.
Earlier this year, imports of timber and lumber products into the US dodged tariffs imposed by Trump, while the impact timber imports were having on its “national security” and local sector was assessed.
Trade Minister Todd McClay said the Government was seeking further details on the tariffs from officials in Washington on what it meant for exporters.
McClay said the Government would be working closely with the US to make it clear that New Zealand wood products complement rather than compete with domestic production.
However, he added that forestry exporters were resilient and well-diversified.
– RNZ