Lumber futures hit nine-month low below $555 on tariff fallout

Lumber futures fell below $555 per thousand board feet, their lowest in nine months, as retaliatory tariffs from Canada on US goods took effect and weighed on demand. Ottawa had announced counter-tariffs of 25% on US lumber and 50% on plywood after US tariffs on several lumber-related goods. US forestry groups have long accused Canada of distorting the market, citing that 94% of Canadian forestland is publicly owned versus 58% privately owned in the US, which they say allows Canadian lumber to be sold at a lower price. The fallout is affecting the forest sector in both countries, with selling lumber prices rising immediately after the news and pressuring demand lower.

Fall is usually a time for renovations, but elevated prices are weighing on the sector. 2% in July as elevated mortgage rates continue to weigh on homeownership.