U.S. Lumber Industry Expands Domestic Capacity Amid Trade Policy Shifts

Since 2016, the U.S. softwood lumber sector has added 8.7 billion board feet of capacity, pushing domestic mills to supply nearly 75 percent of the national market. This shift marks a significant contraction for Canadian producers, whose share of the U.S. market has plummeted from over 30 percent to less than 19 percent in the same period. Industry leaders argue that consistent application of antidumping and countervailing duties has provided the marketplace stability necessary to justify large-scale capital expenditures.

Recent growth is concentrated in regional hubs across the South and Pacific Northwest. Hood Industries is currently developing a $260 million sawmill in Mississippi, while Stimson Lumber in Oregon recently finalized a $90 million facility, an expansion leadership explicitly attributes to the protection provided by tariffs. Despite these gains, the U.S. Lumber Coalition remains critical of the National Association of Homebuilders, urging the group to prioritize domestic housing supply over the importation of lower-cost Canadian timber. Meanwhile, the Coalition is bracing for a sustained trade dispute, citing $2.57 billion in new subsidies recently issued by the Canadian government to support its own forestry sector.